Business Overhead Expense (BOE)

Fixed business expenses such as rent, utilities, and employee salaries that continue while the business owner is disabled — A business overhead expense policy pays the ongoing, necessary expenses of running a business, such as rent, utilities, employee salaries, taxes, and similar fixed costs, while the owner is totally disabled and unable to work. It is designed to keep the business alive so the owner can return to it. Personal living expenses are not covered; that is the role of a personal disability income policy. Benefits are typically limited to a stated monthly amount for a defined benefit period, so the policy covers operating continuity rather than income replacement.

National insurance concept

To pay the fixed business operating expenses, such as rent, utilities, and employee salaries, while the business owner is disabled — A business overhead expense policy pays the continuing fixed expenses of a business, such as rent, utilities, and the salaries of non-owner employees, during a period when the owner-operator is disabled and cannot run the business. Its purpose is to keep the business viable until the owner recovers, so the business does not collapse or have to be sold while the owner is unable to work. Benefits are typically capped at a monthly amount and limited to a set number of months, and they are paid to the business rather than to the owner personally.

National insurance concept