Protect yourself and your business if you cannot work because of an injury or illness.
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.
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;
• 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 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.