Personal disability insurance is designed to replace a portion of your income in the event of an injury or illness.  If you are a business owner (including professional practice owners), there are several disability insurance policies designed to protect your business in the event of a disability.  I will cover one of those policies in this post and continue with other types of policies in subsequent postings.

If you were to become disabled, you probably wouldn’t be available to provide the essential services your customers/clients expect.  You also probably wouldn’t be there to provide the leadership and direction your employees need.  The revenue of the business/practice would most probably decline, but the expenses necessary to keeping the doors open would probably stay the same.

Business Overhead Expense (BOE) is designed to cover your overhead expenses and keep the business running so you would have a viable business to return to.  Without this coverage, you might be forced to consider laying off employees, borrowing money to keep the business alive or, worst case scenario, closing your business.

Overhead Expense Disability insurance can help you keep the business alive by paying ongoing expenses such as rent, utilities and taxes.  It can help pay the salary and benefits of your employees, as well as a portion of the salary of your temporary replacement.  It can also make payments to your existing loans.

The bottom line is a disability does not have to cause the cessation of a business/practice you spent so long to build.  By preserving your business with Overhead Expense Disability insurance, you will help preserve the continuity of your business, while retaining your customers.