Overhead Expense insurance reimburses a business owner for business expenses incurred during an owner’s disability. Covered expenses are those that are deductible for federal income tax purposes, such as replacement salaries, utilities, phone bills and lease payments.

Typical Covered Expenses

  • Employee salaries and benefits (some limitations apply)
  • Replacement salary expenses
  • Property-based expenses for business operation
  • Utilities and phone bills
  • Accounting, billing, legal and collection fees
  • Janitorial, security and maintenance services
  • Professional and trade association dues/subscriptions
  • Office supplies and postage
  • Real estate taxes

Contract Details

  • Benefit Period – Commonly 12, 15, 18, 24 & 30 months
  • Elimination Period – Typically a 30 Day minimum
  • Common Definitions of Disability
    • Own-Occupation & Not Working – Benefit pays out if you are unable to perform the duties of your occupation and not working in any other field.
    • True “Own-Occupation” – Benefit pays out if you are unable to perform the duties of your occupation. During that time, if you are able to work in another occupation, you can, and still collect the benefit from your original occupation. (Ex. – If you no longer can be a surgeon, you would collect your monthly benefits even if you decided to become a teacher. Solely protects your specific occupation.).
  • Common Riders
    • Future Increase Option – (AKA – Benefit Update) – Allows the insured to increase the monthly benefit in the future without the need to show proof of medical insurability, but will need to show proof of financial insurability to justify the increase.
    • Residual & Recovery Benefit – Allows a partial benefit payout in the event of a loss of income due to a partial disability. The monthly benefit payout will be proportionate to the amount of income lost due to the partial disability.
    • Business Loan Protector – Provides the ability to repay a new or existing loan in the event a disability occurs. Protects the outstanding loans for which the business relies on. Please click HERE for product details.