Office Overhead Insurance, or Business Overhead Protection, offers financial security for business-related expenses incurred throughout an owner’s disability period. Learn more about how it works.
Office Overhead Insurance, or Business Overhead Protection, covers business-related expenses should you face an extended disability.
Think of it as a financial safety net for your company. This specialized insurance covers expenses such as rent, utilities, and employee salaries. Below, we break down the basics.
What does Office Overhead Insurance Cover?
Office Overhead Insurance reimburses business expenses incurred throughout an owner’s disability period. It covers several fixed monthly costs, including:
- Rent or mortgage payments
- Employee salaries and benefits
- Utilities and maintenance costs
- Professional fees and dues
- Insurance premiums
- Equipment leases and depreciation.
Office Overhead Insurance follows an expense reimbursement policy, with payments based on actual expenses instead of predicted profits.
How it Works
Eligibility for Office Overhead Insurance is similar to Long-Term Disability (LTD), with the waiting period being 30 days. Once work status has been updated, we require confirmation that the client is:
- Totally disabled while covered under the policy–remaining so through the elimination period;
- And is under the ongoing care of a physician (as defined in the policy).
Clients must be approved for LTD in order to be approved for Office Overhead. Office Overhead is then sent to Underwriting, where both LTD and Office Overhead are reviewed at the same time.
Payments continue up to the maximum benefit period set in your policy. Each month, you’ll receive the lesser of:
- Your actual business overhead costs during the time you’re disabled (or your share, if you’re in a partnership), or
- The coverage amount you selected in your policy’s benefit schedule.
We recommend reviewing your protection plan every six months to ensure all expenses are accounted for and any growth plans are included.
Choosing your Office Overhead Coverage
Core costs to think about when determining your monthly business expenses–and therefore coverage needs–include:
- Rent and mortgage payments
- Employee salaries and benefits
- Professional service fees
- Equipment leases and future purchases
- Insurance premiums
We recommend reviewing your protection plan every six months to ensure all expenses are accounted for and any growth plans are included.
Increasing Office Overhead coverage
You can increase your protection as your business grows. Increases do need to be underwritten again.
We’re Here to Help
Do you have questions or want to learn more about Office Overhead Insurance? Feel free to reach out to one of our Licensed Advisors at 1-800-661-6430. You can also get a quick and easy quote online.