How a Business Overhead Expense Policy Can Protect Your Business

What Happens to Your Business When You Can't Work?

Picture this: You’re the proud owner of a small business, pouring your heart and soul into every aspect. Then, out of nowhere, a disability knocks you off your feet. What do you think happens to the rent, your employees’ salaries, and your utilities? Most people don’t want to think about these scenarios, but the reality is that life can throw curveballs. And when it does, having the right insurance can make all the difference.

Meet the Business Overhead Expense Policy

So, what’s the hero of this story? Enter the Business Overhead Expense Policy (BOE). This often-overlooked gem is designed specifically to cover ongoing operational costs if the owner is temporarily unable to work due to a disability. Think of it as a lifeline for your business when you need it most.
How does it work?

Here’s the thing: say you’re out of commission for a few months due to a serious injury or illness. The BOE policy kicks in, covering those essential expenses like:

• Rent for your business location
• Utility bills that keep the lights on
• Employee salaries, so your team doesn’t have to look for new jobs

When these costs are taken care of, you can focus on your recovery without worrying about the financial strain on your business.

Why Not Use an Individual Disability Income Policy?

You might wonder, "Why not just rely on my Individual Disability Income Policy?" While it’s a valid option for personal income replacement, it’s not meant for covering business expenses. The two types of policies serve different purposes. An Individual Disability Income Policy caters to your personal needs—your monthly bills, living costs—while the BOE policy directly addresses the operational costs of your business.

Other Insurance Options That Don’t Quite Fit

Now let’s talk about some alternatives:

1. Accidental Death and Dismemberment Policy: This is great for the unexpected, offering benefits if you suffer a critical bodily injury or death due to an accident. But let’s be real—it won’t pay for your rent.

2. General Liability Policy: This covers claims related to bodily injury or property damage. While it’s an important part of a comprehensive insurance plan, it doesn’t protect your business from the financial fallout of a disability.

Why It Matters

You might be thinking, “Do I really need this?” The answer is a resounding yes! A Business Overhead Expense Policy doesn’t just provide peace of mind; it equips you to navigate challenging times without collapsing your business. Keeping your operations running smoothly can be the difference between a small setback and permanent closure.

Real Talk: It’s More Common Than You Think

Did you know? Roughly one in four adults will experience a disability at some point in their professional lives. It’s part of living in a world full of unexpected events—car accidents, severe illnesses, or even mental health issues. Having the right type of insurance can prepare you for the unthinkable and help your business weather life’s storms.

In summary, while you’re off focusing on getting better, let the Business Overhead Expense Policy take care of those looming bills that keep your business running. Sometimes, the right tool is all you need to keep your dreams alive. Don’t leave your business’s future to chance; it’s just too important.