Small business owners – the heart and soul of their company

Keeping on the DI theme this month, what if you were a small business owner and your company relied on just yourself or possibly one other person to produce revenue?  If you were unable to produce that revenue, what would happen to your business?  How long would it be able to stay open?  Business Overhead Expense (BOE) plans cover the actual expenses of the business like payroll, rent, office equipment, property taxes, and other day to day operational expenses.    Just because you aren’t able to work, doesn’t mean your business expenses will stop or go away.  That could create substantial debt in a very short period of time.

Typically a BOE policy has a benefit period of 1 to 2 years – that gives the business owner the luxury of time.  Time to decide to sell the business, close the business, or hire a new partner.  

The amount of coverage your business is eligible for is based on your tax return, similar to a personal policy.  As a small business owner, it’s vital to ask the right questions about disability insurance within your business – if it makes sense to have a personal policy and/or a business overhead expense policy, who it should be on, and what it needs to cover.