Business Overhead Expense Insurance
Protection for Your Business Expenses
Ensure Operations Continue During Your Recovery
If you’re the driving force behind your business, what happens if you’re suddenly unable to work due to illness or injury? Without protection, essential expenses like rent, salaries, and utilities could quickly put your operations at risk.
Business Overhead Expense Insurance is a disability insurance policy that reimburses your business for fixed monthly expenses if you’re unable to work due to illness or injury.
The payout ensures your company can continue running while you recover.
It can cover things like:
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Rent or mortgage payments
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Employee salaries and benefits
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Utilities, internet, phone bills
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Office equipment leases
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Accounting, legal, and insurance costs
How Does It Work?
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You select a monthly coverage amount based on your fixed expenses
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If you become disabled, the policy pays monthly benefits after a short waiting period
(typically 30–90 days) -
The business receives reimbursements (not taxable income) to cover eligible costs
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Coverage typically lasts 12 to 24 months, giving you time to recover or plan next steps
Business Overhead Expense Insurance is especially important for:
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Sole proprietors and incorporated professionals
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Business owners whose income drives the company
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Medical, legal, and financial professionals with overhead
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Entrepreneurs without a succession or contingency plan
Is This Coverage Right for You?
Business Overhead Expense Insurance is a smart choice if you:
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Run a business where you are the main income generator
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Have fixed monthly expenses like rent and payroll
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Want to avoid dipping into savings or taking on debt during recovery
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Already have personal disability insurance and want full protection
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Get your answers
Personal disability insurance replaces your income. Business Overhead Expense Insurance reimburses your business for operating costs while you’re unable to work.
Eligible fixed expenses typically include rent, utilities, employee wages, loan payments, equipment leases, and professional services. Your own salary is not covered.
The business pays the premiums, and they are usually tax-deductible as a business expense.
Most policies offer 12–24 months of coverage. That’s usually enough time to recover or make business continuity decisions.
The waiting period before benefits begin typically 30, 60, or 90 days after disability starts. Shorter elimination periods usually come with higher premiums.
Yes, incorporated professionals and small corporations often use BOE insurance to protect business cash flow while the owner recovers.
Still Have Questions?
Disclaimer: The information contained in this article is provided for general informational purposes only and does not constitute financial, legal, tax, or investment advice. While we strive to ensure that the content is accurate and up to date, Safe Horizon Financial makes no guarantees regarding its applicability to your individual circumstances. Readers should consult qualified professionals (such as a licensed financial advisor, accountant, or lawyer) before making decisions based on the information presented. Safe Horizon Financial is not responsible for any actions taken or not taken as a result of this content.