Protect your business if you cannot work because of an injury or illness.
As a business owner, you understand the importance of insuring your business against the risk of flood or fire, but do you have a plan in place should your business temporarily lose its most important asset – you? BOE-Business Overhead Expenses reimbursement plan will help you when help is needed the most. This coverage is similar to Disability benefits, except instead of replacing your personal income while disabled, BOE protection reimburses your business for operating expenses like salaries, leases, and utilities so these recurring costs don’t jeopardize the empire you have worked so hard to establish. Business Overhead Expenses are fixed contractual operating expenses of a business, where the Insured Person is an owner, generates the sales or revenue, and is involved in the day-to-day operation of that business. If a premium is accepted for any period during which the Insured Person is no longer responsible for the Business Overhead Expenses, this Policy will remain in effect but the Business Overhead Expense Benefit will be limited to the return of premium accepted during that period for this benefit. Click here for pdf Lifestyle-Protection-Planner
Business Overhead Expenses are limited to the Insured’s share of the fixed contractual operating expenses of the business and include:
• scheduled installment payments of principal of debt allocated to business use;
• office rent, leased and rented equipment, business property liability insurance premiums, dues for professional associations, interest on the debt, accounting fees;
• other fixed contractual business expenses, which are normal and customary in the operation of the business
• wages, fees or other compensation for any employee if that employee is involved in administrative support and is not engaged in any revenue-producing or sales-generating activities for the business and was continuously employed in the business for a period of not less than six months prior to the Insured Person’s date of Disability. For an Independent Transport Owner-Operator, a replacement driver is included as a Business Overhead Expense. For a farm owner, a replacement farmer is included as a Business Overhead Expense.
Business Overhead Expenses Do NOT Include:
• wages, fees or other compensation payable to staff or any person who generates revenue for the business;
• any expense for which the Insured Person is not liable, any expenses for which the Insured Person was not regularly liable before the start of Disability;
• travel and entertainment expenses;
• any business or office supplies, fuel or repairs and maintenance;
• Business Overhead Expenses for which the business is reimbursed through any other source.
Source: The EDGE Benefits