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Business Overhead Expenses

Business overhead expenses (BOE) are the required monthly payment allocated towards maintaining day-to-day business procedures. When a small company faces a disability to one of its employees (or only employee), the income to pay for these overhead expenses may not be met, causing the business to lose significant profits or even go bankrupt.

In order to ensure that the small business can uphold its operations and continue to produce revenue after an accident, disability insurance policies include business overhead expenses in their claims. These allowances are based on actual expenses, rather than expected profits.

BOE Insurance Claims

Here is a list of some of the business overhead expenses that may be covered in your disability insurance claim:

  • Rent, property taxes, and utilities
  • Employees’ salaries and payroll taxes
  • Maintenance of equipment
  • Professional memberships
  • Accounting fees

Some items that are not typically covered include wages for fill-in employee that replaces the disabled, income taxes, cost of inventory and furniture. Ask an insurance agent or consult your policy for more details.