Managing a small business signifies learning about all various types of insurance. You must figure out about the different insurances you need, like disability, health, and life insurance. Also, you must figure out what you can afford to offer your employees. You must also learn about the insurance types that are available for and essential to your actual business. An example is liability insurance for accidents. One that may be new to you is business overhead expense insurance, or BOE. In essence, it’s insurance for your company if something happens to you personally. Keep reading to learn more about whether this particular insurance is right for your small business.
How Does BOE Work?
Business overhead expense insurance (BOE) is a policy that covers your company’s operating costs if you become disabled and cannot work. However, BOE only applies to established small companies and owners with the ages between 18 to 64. If the owner cannot work due to disability, the insurance benefit will pay out over the benefit period (usually up to 24 months). In addition, the benefit can pay debts, wages, dues or fees, office expenses, and other insurance premiums. Sometimes, unused benefits can roll over to the following month to cover cost variations.
How Does BOE Differ from Disability Insurance?
Moreover, business overhead expense insurance is similar to disability insurance because it only pays if you’re unable to work. The primary difference is that disability insurance is personal and covers some of your personal expenses. It doesn’t keep a business going. In some cases, the company will continue operating just fine without you actively working. However, that isn’t true for most small businesses. From landscaping to a small café, things can decline if you are not in there working. Fortunately, BOE covers operating costs so your small business survives your short-term disability.
What Won’t BOE Cover?
BOE insurance can’t be used to cover your wages or the profits that you typically draw from your business. The insurance also cannot make new improvements to your office space. It can also not pay relatives who were not already employed by your business for at least sixty days before your disability. Lastly, business overhead expense insurance can’t pay for any expenses under another income source taxes that can pass on to your customers.
Find the Right Health Insurance Solutions for Your Needs
Malden Solutions has a wealth of expertise in providing employer insurance solutions, HR solutions, and individual insurance solutions to businesses both big and small. Our team of seasoned professionals can help you navigate the rapidly-changing world of insurance with ease. We partner with businesses and individuals throughout the country to provide our dedicated services for employee benefits but also work within our surrounding communities in Maryland, Northern Virginia, and Washington, D.C. Contact us today to learn more about how we can provide effective, dynamic solutions for your business. Stay connected with us on Twitter, Facebook, and Linkedin.