Business Overhead Insurance

Supplemental coverage * Different occupations * Medical history

BOE is designed to provide a tax deductible solution to a serious business problem, business expense cash flow during periods of disability. This guaranteed cash flow helps provide business stability and security to retain clientele because of continuing service, maintain profit margins and retain trained employees.

Optional Riders of Business Overhead Expense:

  • Residual Disability Rider more information
  • Salary Replacement Rider more information

Salary Replacement is paid in addition to the Total Disability Monthly Benefit and is to pay the salary of the person hired to replace you in the performance of the substantial and material duties of your occupation while you are disabled. The replacement cannot be a member of your immediate family and cannot be a principal or then-current employee of the business entity.

Residual Disability Benefits will be paid when you are engaged in your occupation but your business income is reduced by 15% or more due to an accident or sickness. After satisfying your elimination period the residual benefit payable will be determined by comparing business income to eligible expenses.  If the eligible expenses are greater than the business income then the benefit payable will be the difference between the two, not to exceed the maximum monthly benefit of the policy.

Take The Case Of...

Dr. C is married to Dr. J. Dr. J owns the practice. Dr. C is a W-2 employee. They share the expenses of the practice equally. Traditional carriers will not offer Dr. C any Overhead Disability Insurance because Dr. C is not an owner, but an employee. This is not an issue for Petersen International Underwriters. We view the case as it is and insure the obligations of Dr. C, who though an employee has agreed to share the overhead costs.

In like circumstances, we also know that traditional disability carriers balk when there are multiple doctors in the same practice and they request Overhead Expense coverage.

Petersen International Underwriters can arrange benefits of $1,000 to $100,000 per month or more, so there is no reason your clients should be underinsured.

Common Uses

Examples of eligible monthly expenses:

  • Rent or Mortgage Payments
  • Utilities
  • Laundry & maintenence
  • Accounting, billing, and collection services
  • Employee salaries
  • Employee benefits
  • Property taxes
  • Other regular monthly expenses (except for the cost of goods sold)