by Julie Ngo
Business Overhead Expense – Another form of disability insurance specially suited to the business owner is Business Overhead Expense (BOE). BOE policies are designed to reimburse certain business expenses of the owner while he or she it totally or partially disabled. The funds provided by the BOW policy help the business survive during the period of the owner’s disability. Often, the BOE policy is the reason the owner has a business to return to after the disability. Should the disability appear permanent, the owner ususally has additional time to make decisions regarding the future of the business.
Generally speaking, there are only certain types of business owners who qualify for BOE coverage. These include owners of closely held businesses and professionals with their own practices.
Some of the expenses typically covered by a BOE policy include the following:
- Legal and accounting fees
- Utilities
- Principal payments on debt
- Leased equipment
- Business insurance premiums
- Office supplies
- Professional dues
- Business taxes
- Rent
- Workers Compensation
In no instance is there any payment from a BOE policy to the business owner. Instead, these funds must come from his or her own disability plan.
Julie Ngo is a State Farm Insurance Agent located at 28410 Old Town Front Street in Temecula. She can be reached at (951) 695-2625.