Business overhead expense (BOE) disability insurance, also known as Business Expense Insurance, pays the insured's business overhead expenses if he or she becomes disabled. A BOE policy pays a monthly benefit based on actual expenses, not anticipated profits. It is designed for businesses that rely on a small number of people (or one person) to produce revenue.
The following business overhead expenses are typically covered by a BOE disability policy: [1]
Policies do not typically cover the salary of a temporary employee hired to do the duties for disabled people, unless a substitute salary expense or similar rider is purchased with the policy. Income taxes and the cost of inventory are some expenses that are not covered.
Business overhead expense (BOE) disability insurance, also known as Business Expense Insurance, pays the insured's business overhead expenses if he or she becomes disabled. A BOE policy pays a monthly benefit based on actual expenses, not anticipated profits. It is designed for businesses that rely on a small number of people (or one person) to produce revenue.
The following business overhead expenses are typically covered by a BOE disability policy: [1]
Policies do not typically cover the salary of a temporary employee hired to do the duties for disabled people, unless a substitute salary expense or similar rider is purchased with the policy. Income taxes and the cost of inventory are some expenses that are not covered.