Business Overhead Expense (BOE) Disability Insurance is a cornerstone of a well-managed corporate financial plan. The coverage financially indemnifies the regular monthly overhead of a company in case of the partial or total disablement of the business owner.
BOE coverage allows a business to stay afloat while the owner is on the mend with the goal of getting him/her back to work.
Most plans provide 12 to 24 months of benefit after a short elimination period which can be the saving grace of business owners whose firms employ fewer than 50 employees. BOE plans are important insurances for small to medium business owners along most industry lines. However, there is a concentration of this type of coverage among medical and dental practices in the United States.
Physicians and Dentists find BOE coverage imperative due to the operational nature of their firms which have disproportionately-high monthly overhead expenses. Their overhead includes expensive equipment loans and professional staffing costs that most small businesses don’t usually encounter.
A common shortcoming of most BOE disability plans is that coverage excludes the salary of any employee with the same profession as the insured person. For physician and dental practices, this means that salaries of any other doctor or dentist on the owner’s payroll will not be covered even if the medical or dental professional is an employee.
Now available is a Salary Replacement Benefit Rider which, in addition to the monthly overhead benefit, pays the monthly salary of the business owner’s replacement while the owner is disabled. The rider is an incredible benefit for your physician and dentist clientele as it allows all expenses to be covered as the business runs normally under the watchful eye of the replacement before the owner is able to return to work.
Hopefully you recognize how amazing this scenario is. The BOE policy, with the Salary Replacement Benefit Rider, covers the overhead as well as the salary of a replacement professional, allowing the business to run without the overhead costs. This translates into extra income for your client while he/she is disabled. Technically, if your client has personal DI in place in addition to the BOE plan, he/she could earn more while disabled than while at work!
Please contact your Disability Income Specialist to learn more bout the extra benefits of our Business Overhead Expense Insurance.