Protect Yourself And Your Business With Business Overhead Insurance
If you own a small business you know the risks that are involved and are always keep an eye open for a way to protect your family and employees by assuring that your business - the lifeline to their financial welfare - does not shut down of drop off significantly. In this article we are going to discuss Business Overhead Insurance and how it may be able to protect you in those vulnerable times when you are sidelined with illness or injury.
If you own a small business you need to ask yourself if you could still pay your company’s overhead expenses and bills if you became sick or suffered a disabling accident?
What would happen to your company if income suddenly stopped because you were too sick or injured to work? How quickly would your savings account last as your bills continued to mount? What would you do if you had to one day choose between paying your company’s mortgage or rent payment or your employees’ salary, because you don’t have the income to pay both? With the current trends, showing that 2 out of 3 small businesses close up shop in the first 5 years, you certainly don’t need another reason to fail, right?
If you’re like most business owners, your paycheck is a lifeline to your organization’s financial stability. If you cannot work to earn a living, your business is headed for some very difficult times.
Often overlooked or dismissed but very important for most business owners to have is a form of disability income insurance known as Business Overhead Expense coverage. This type of insurance pays the insured’s business overhead expenses if he or she becomes disabled. The policy pays out a monthly benefit amount which is based on actual operating expenses, not on anticipated surplus or profits. Mainly, this type of insurance is designed for smaller businesses that rely on just one or maybe two or three “main” people (owners/partners, etc) to keep the business running and produce revenue.
With BOE coverage, typical expenses that are covered include rent or mortgage payments, utilities bills, employee’ salaries and payroll taxes, postage and other mailing expenses, interest payments on some business debts, equipment maintenance or rental fees on some equipment, taxes on the business property location, Workers Compensation premiums and other qualified expenses. On average, BOE policies have shorter benefit periods (no more than 2 years) than do individual plans, and will cover the actual qualified expenses up to the maximum benefit amount chosen when the policy was purchased, but never for more than the actual expense itself. Rates are determined based on the business owner’s age, occupation and health status. The good thing about these type plans is that, while in force, the monthly benefit amount can be increased without having to prove health status.
If you’re a small business owner in South Carolina, talk with your agent to find out if a BOE policy would benefit you!
