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Business Overhead Expense

AICPA-endorsed Business Overhead Expense Insurance can help keep the business running while you are sick or injured with monthly coverage ranging from $1,000 to $12,000.
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What is Business Overhead Expense Insurance?

Business Overhead Expense (BOE) Insurance, issued by The Prudential Insurance Company of America (Prudential), endorsed by the AICPA, is a member-exclusive coverage that can help you run your business in the event that you become disabled and are unable to work. Benefits help:

  • Cover day-to-day fixed operating expenses.
  • Provide for your employees.
  • Protect your personal finances.
  • Keep the business you built.
What is Business Overhead Expense Insurance? What is Business Overhead Expense Insurance?

Why do CPAs need it?

The AICPA BOE Plan is here to help you cover day-to-day fixed operating expenses, provide for your employees, and protect your personal finances, so that you can focus on what's most important...getting better after a disability.

 

You have a responsibility to yourself, your clients and your employees to keep your business running. Invest in a business insurance plan that can help protect your livelihood when the unexpected happens.

What it covers

  • Overhead expenses such as employees’ salaries and payroll taxes, rent or mortgage interest payments, charges for utilities such as electricity, telecommunications, heat and water, and business insurance premiums.
  • ​Coverage amounts available from $1,000 to $12,000 per month.

  • Duration begins after you have been disabled for 30 continuous days. If you're under age 65 when your disability begins you can receive benefits for up to 24 months for each period of disability. If you’re age 65 or older when your disability begins, you can receive benefits for a maximum of 12 months for each period of disability. Your coverage will end the first of January when or after you turn 70. It will also end if benefits have been paid for the maximum duration for your age noted above.

  • Tax-deductible Payments. You might be able to deduct your premium payments when you file your federal income tax return. As a business expense, your payments fall under IRS ruling 55-264, IRB 1955-19, page 8. You should consult your tax advisor about this deduction.

What it costs

With BOE Insurance, you can get coverage that fits your needs at affordable rates. Annual Cash Refunds may help lower your cost of insurance.* 
 
 
What it costs What it costs

Why CPAs choose Business Overhead Expense Insurance

No premium contributions are required for your coverage while you are receiving Business Overhead Expense disability benefits. You don’t have to be permanently disabled or confined to your home or a hospital to receive benefits. You can even receive benefits if you’re disabled and your income has been reduced.

When you sign up, you have a 30-day, no-risk obligation. If you decide not to accept coverage, simply return your Certificate of Coverage within 30 days.

If you die while receiving benefits, your eligible survivor can receive a single lump sum equal to three times your monthly benefit amount. The payment will be prorated if fewer than three months remain in your benefit period.

Who is eligible for AICPA BOE Insurance?

The BOE Plan is offered exclusively to AICP​A members who are less than age 70. To qualify, you must be responsible for 20% or more of the expenses of your business with a minimum of 30 hours of work per week.

 

You are eligible to apply if you live in eligible states or territories.

About the Underwriter

The Prudential Insurance Company of America (Prudential) has been the insurance coverage provider to the AICPA and its members since 1947. Prudential is more than an insurance provider to the AICPA and its members.  We partner with the AICPA to understand its members’ needs and endeavor to ensure that its members and their families achieve financial wellness.  AICPA member’s needs are at the heart of everything we do. When the AICPA decided to partner with Prudential, they joined forces with a company that has helped customers weather wars, the Depression, pandemics and many other challenging events over the past 150 years. Prudential is here to help you solve today’s challenges and support you in whatever lies ahead.

About the Underwriter About the Underwriter
Frequently Asked Questions
BOE Insurance can help protect you from having to dip into your Long Term Disability (LTD) Insurance benefits (or savings) to pay business expenses, thereby helping to safeguard your LTD benefits for expenses like medical co-pays, rent/mortgage on your family home, childcare, credit card bills, utilities, etc.

 

Having both BOE and LTD coverage can help provide peace of mind so you can focus on your recovery. And, BOE only has a 30-continuous, consecutive day waiting period, allowing you to get your benefits sooner.
You are considered disabled if you are unable to perform the material and substantial duties of your occupation due to sickness or injury. You also must be under the regular care of a doctor. If you are working or have the capacity to work 40 hours per week, you may not receive benefits.
You should consider an amount that will help cover the current fixed monthly expenses needed to run your business. You can use our  Monthly Expense Worksheet  (PDF) to calculate your needs.
If you receive benefits for a disability, recover and become disabled again while you're still covered under the Plan, the second disability may be regarded as a continuation of the first. You won't have to satisfy an additional waiting period. 
 
However, the second disability will be considered new if you were working full-time for at least three consecutive months. The second disability will also be considered new if it is the result of an entirely unrelated cause.

Your coverage ends when you reach age 70, unless you are receiving benefits. Benefits are paid in accordance with the terms of the Certificate. Early termination occurs if:

  • You are no longer a member of the AICPA
  • The master policy terminates
  • You withdraw from the Plan voluntarily
  • You fail to make timely payments of the required contributions
  • You have received benefits to the maximum period of payment
  • You begin active duty in the armed forces

You may also request to move to a lower monthly coverage amount if your coverage is above $1,000.

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Disclaimer

*Annual Cash Refunds may help lower your cost of insurance. The AICPA Insurance Trust (Trust) reviews a number of factors in determining the amount, if any, of Annual Cash Refunds, such as premiums, claims, expenses, and other charges. These refunds vary year to year and are not guaranteed. The Trust has paid Annual Cash Refunds every year since 1984 for each Disability Insurance Plan. However, the Trust may suspend the distribution of Annual Cash Refunds at any time. These refunds could vary based on a number of factors, such as your rate class, payment mode, engagement in certain wellness programs, and the premium you pay. Please note, when premiums are lowered, refunds may decrease as well.

Please see the Exclusions and Provisions.

Please see the Group Life and Disability Income Medical Underwriting NOTICE.

This site may contain marketing language, on products issued by The Prudential Insurance Company of America, that have not yet been approved in all states.

Not for use in New Mexico.

Not for residents of New Mexico.

North Carolina Residents: THIS IS NOT A MEDICARE SUPPLEMENT PLAN. If you are eligible for Medicare, review the Guide to Health Insurance for People with Medicare, which is available from the company.

This policy provides disability income insurance only. It does NOT provide basic hospital, basic medical, or major medical insurance as defined by the New York State Department of Financial Services.

VIRGINIA RESIDENTS: THIS IS AN EXCEPTED BENEFITS POLICY. IT PROVIDES COVERAGE ONLY FOR THE LIMITED BENEFITS OR SERVICES SPECIFIED IN THE POLICY.

Aon Insurance Services is the brand name for the brokerage and program administration operations of Affinity Insurance Services, Inc., a licensed producer in all states (TX 13695); (AR 100106022); in CA & MN, AIS Affinity Insurance Agency, Inc. (CA 0795465); in OK, AIS Affinity Insurance Services Inc.; in CA, Aon Affinity Insurance Services, Inc., (CA 0G94493), Aon Direct Insurance Administrators and Berkely Insurance Agency and in NY, AIS Affinity Insurance Agency.

Group Insurance coverages are issued by The Prudential Insurance Company of America, a Prudential Financial company, Newark, NJ. The Booklet-Certificate contains all details, including any policy exclusions, limitations, and restrictions, which may apply. If there is a discrepancy between this document and the Booklet-Certificate/Group Contract issued by The Prudential Insurance Company of America, the Group Contract will govern. In Washington, the controlling document is the Certificate, not the Contract. Contract Series: 83500. CA COA #1179, NAIC #68241.

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