This coverage is designed to reimburse owners of small businesses (sole proprietors, partners, closely held corporations), operated from a location away from the home, for normal and customary expenses necessary to maintain the business when disabled. A non-owner may be eligible if contractually responsible for business expenses – supporting legal and financial documentation will be required. ALC members are eligible for a 15% discount on Business Overhead Expense (BOE) disability coverage. Covered overhead expenses under the policy are fixed expenses that are usual and customary in the operation of the business. Examples of some covered overhead expenses include:
- Utilities
- Rent/mortgage payments (principal & interest)
- Employee wages, payroll taxes and benefit contributions
- Equipment
- Property and liability insurance premiums
- Professional licensing fees
- Professional, association and trade dues
- Business real estate taxes
- Accounting, billing and collection service fees
- Scheduled installment payments of interest on business debts
- Janitorial, laundry and maintenance services
- Expenses for which the insured would be liable while conducting normal business
- An item of expense generally accepted as a tax-deductible business overhead expense by the United States Internal Revenue Service
Interested in learning more? Request a BOE Quote today!