Disability Insurance

Business Overhead Expense

Business Overhead Expense (BOE) coverage is designed to reimburse owners of small businesses (e.g., sole proprietorship, partnerships, closely held corporations) - not operated from the home - for normal and customary expenses necessary to maintain the business upon disability of an owner(s).

• The owner must devote full-time service to the business, occupation or profession and be personally liable for expenses.
• If the ownership is shared with others, only the insured's pro-rata share of expenses will be covered.
• The owner must produce substantial income for the business and her or his disability would cause great disruption or even failure of the business.
• Coverage will not be available if the prospect is overinsured for individual disability income coverage.
• Benefits over $5,000 per month require documentation of actual expenses from filed business tax returns.
• If there is other BOE coverage in force with another company, a non-duplication of expense endorsement will be necessary.
• Employees' salaries - Considered a covered expense for those employees not doing the same duties as the owner.  Employees doing the same duties as the owner will not be considered.

Availability

Disability Buy-Sell

The objective of Disability Buy-Sell insurance is to provide money to assist in the purchase of a disabled owner's interest in a business with two to 10 co-owners in the event of a long-term disability.  Many firms have protection in case of an owner's death, but overlook the financial devastation that can occur as a result of disability. Flexible funding methods are available using lump-sum and/or monthly installment payments, which help to provide the funds to effect an orderly transfer of ownership.

Product Strengths