Do your business owner clients have a plan to protect their business if they become injured or sick and can’t work?
Any business has overhead — rent, utilities, employee wages, insurance premiums and more — that could become difficult or impossible to pay in the event of a disabling illness or injury. For instance, if a doctor or dentist becomes disabled and is unable to see patients, the financial health of their practice is in danger.
Business overhead expense (BOE), one of the most underutilized and underappreciated forms of business insurance, is designed to solve this problem. This is a tax-deductible insurance product that provides a reimbursement benefit for covered business expenses while an owner is injured or sick and unable to work. These benefits can also be used to make loan payments for expenses incurred due to the disability as well as the salary of a replacement. Typically, a BOE policy has a 30- or 60-day waiting period before benefits are paid, and benefits are available for 12, 18 or 24 months.
The power of BOE coverage is to keep businesses’ doors open when an owner is unable to work for an extended period of time. For example, the injured doctor or dentist can use this insurance to pay for a colleague to cover his or her patients during the period of disability.
If you work with business owners or want to work with business owners, this is a fantastic opportunity to differentiate yourself. By offering tax-exempt insurance, you can keep your clients’ businesses afloat during a period of disability. For more information about these policies as well as tips on talking to business owners about disability insurance, see our client-friendly brochure below, contact us or give us a call at (203) 226-4077 to set up a consultation with a disability specialist.
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