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DI for Business? Business Overhead Expense (BOE)


Most people will agree that individuals need disability insurance to protect

their incomes. But have you thought about DI for businesses? A business

can lose income due to an accident or illness, just a like an employee can.

If the owner, or key person becomes disabled, how will that impact the

bottom line of the business they own or work for? How will they keep all

their employees on payroll with businesses that are opened reducing

hours. What would happen to their business if the doors could open but

they weren’t able to drive revenue into the business? How long would it

stay open?


Think not only about the dentist if they can’t see patients, but how long can

they pay the receptionist and hygienist? Also think of the contractor if they

can’t go do estimates. How many jobs do they have lined up and when

would the business suffer? Think of the local bakery if the owner / baker

can’t come to work? How will they pay for a temporary replacement or will

they have to close? Ask your business owner clients what would happen to

their business if they couldn’t go in and unlock the door each morning for 6

months, would the doors be opening a year from then? How long could

the business continue to make payroll? The answers probably won’t

surprise you.


So, what can we do to help business owners in this situation, where

business interruption insurance won’t help? There is Business Overhead

Expense (BOE). BOE pays a benefit directly to the business for covered

expenses, like most of the payroll, rent, insurance, utilities, supplies so the

business can remain open while the owner is disabled so there is a

business to return to when they recover. Having BOE means the owner

does not have to worry about payroll, having to lay off valuable employees.

The rent, phone bills, internet, equipment leases will be paid with the

benefit that is paid directly to the business to keep the business afloat

during those times.


In the case where the person driving revenue into a business is not an

owner (think lead sales person) we can look at key person insurance that

will do most of the things BOE will, but cover the key person.


Let’s talk today about how you can help your business owners protect their

business if they become ill or are injured.

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