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What is Office Overhead Expense Insurance?

If you operate a business this sensible insurance will help pay the bills for your business in the event that you become disabled due to accident or sickness.  Office overhead insurance provides peace of mind knowing that many of your bills will be paid and your business can continue to operate.

Expenses are reimbursed by this type of insurance.  Generally, the premium paid for this type of coverage is tax-deductible to your business.  Expenses such as rent, salaries, utilities, property taxes, lease expenses for equipment and other normal operating costs are covered by this plan.

Coverage for office overhead insurance is usually purchased by professionals such as a physician, accountant, lawyer or principal/owner of a closely held business or practice.  Office overhead insurance should be non-cancellable until age 65, guaranteeing you that the coverage cannot be cancelled by the insurance company.  Should you be in a position to no longer need the coverage then you have every right to terminate the plan. Benefits from office overhead insurance are usually paid for a period of months, ie. 12, 15 or 24.

This coverage is vital for businesses and practices in which the owner’s ability to generate income makes a difference between the office/business being open or closed. There are generally a few circumstances when the office overhead insurance will not be paid if the disability is due to:

  • An act or accident of war, whether declared or undeclared.
  • Normal pregnancy or childbirth (disabling conditions of either of these are covered).

The plan reimburses eligible expenses on a monthly basis.  A list of business expenses is submitted to the insurance company at the time of application and underwriting. Office overhead insurance is just another sensible step business owners can take to protect their business and personal cash flow.  This type of insurance allows business operations to continue until the insured owner either returns to work or makes a decision regarding the future of the business.

Talk to your financial advisor. Get in touch.

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