Business Overhead Expense Insurance Overview
At this time the Business Overhead Expense (BOE) insurance plan is not available in Alaska, Colorado, Montana, North Carolina, New Hampshire, Washington, or the U.S. Territories.
If you are an owner of a firm and become disabled, Business Overhead Expense insurance will help to keep your firm running smoothly.
The AICPA Business Overhead Expense (BOE) Insurance Plan reimburses business owners for existing overhead expenses incurred while they are disabled, keeping the company up and running while the owner recovers.
Regular expenses that could be covered under a BOE policy include employee salaries, rent, leases and utilities to name a few. And BOE premiums are generally tax deductible as a business expense.
Have you considered what would happen to your business if you had an accident or an illness? How long could your businessand your employees, whose salaries may not get paidlast if you became disabled and were unable to work? How do you prepare for the unexpected? The AICPA BOE Plan can help:
- Pay office expenses, such as employee salaries and wages, rent, utilities, business insurance premiums.
- Protect your disability incomeso you won't have to take money out of your long-term disability benefit to pay office expenses.
- Protect the employees and partners of the firm from the effects of one partner's disability.
Why do you need BOE insurance in addition, or instead of, LTD insurance?
Long Term Disability (LTD) Insurance can be used to pay for both personal or business expenses. However, as an owner of a business, you should consider BOE insurance so you won't have to dip into your LTD insurance (or your savings) to pay for your business expenses if you become disabled. Rather than using your LTD insurance to pay your employees' salaries and other bills associated with your business you can use it to pay for your own medical expenses, rent/mortgage on your family home and other everyday expenses for you and your family's needs-not related to your business. Having BOE insurance, in addition to LTD insurance, can be the difference between keeping your business operating smoothly and having to close its doors permanently. And, BOE only has a 30 day waiting period which allows you to get your benefits even sooner.