Expense Insurance

Expense Insurance, commonly called Business Overhead Insurance protects Colorado business owners by covering operating expenses while the owner is out of work because of a disability. Business overhead expenses (BOE) reimburse the insured for expenses that are vital to keep the business operating. Without an insurance policy like this, a business owner may not have financial support to keep the doors open. How long can a business survive if the owner is temporarily disabled and unable to work? A BOE acts to financially support a business during the rough period of an owners disability.

Business Overhead Expense Insurance

Business overhead expense (BOE) insurance is arranged to compensate a Colorado business for overhead expenses if a business owner becomes disabled. This is different from a personal disability policy because that type of insurance pays benefits to age 65. A BOE insurance policy pays a shorter benefit of 1 to 2 years after a period of waiting time of usually 30 - 60 days. This waiting time is called the elimination period. Common conjecture says that most Colorado businesses cannot stay open more than 2 years after the owner becomes disabled and the business will either be liquidated, sold, or shuttered. BOE policies also work with multiple owners. Each owner can take out a policy to oblige their own share of the expenses.
Industry standards state that there are 2 conditions which must happen to initiate the policy to pay out proceeds.
  1. The owner is completely disabled from sickness or injuries.
  2. All of the expenses that need to be covered by the insurance policy need to be incurred while the owner is disabled.


What Expenses are Covered with Business Overhead Insurance?

The salaries of employees
Taxes related to employment
Benefit costs of employees
Accounting fees and legal fees
Rent for property and leased equipment
Loans on mortgages owned by the business
Business debt interest payments
Business utility payments
Business insurance payments
Taxes on property owned by the business


Business Overhead Insurance Benefits

The benefits of a Business Overhead Insurance policy keep the business afloat during the period of disability. It pays for the day to day operations of a business during the event of an owner becoming and remaining disabled. The premiums paid out for a BOE policy are tax write-offs as a business expense, but the benefit payments are taxed. Policy are paid out monthly up to the policy’s monthly coverage limit.

Expense Insurance Quote in Denver, Colorado

Speak to a Colorado insurance agent at DCInsurers - Mountain to the find right Business Overhead Expense Insurance Policy that meets your business needs. For Immediate Service Contact Kevin Krupka 720-974-1702 or fill out the business expense insurance quote form below.

Request A Quote Today!