Overhead Expense Insurance

An Overhead Expense (OE) insurance policy helps ensure that business owners can protect their business if a disability prevents them from working. Overhead Expense insurance reimburses an owner for business expenses incurred during a disability.

This insurance helps cover the day-to-day operational expenses of the business, such as rent, utilities, salaries, insurance premiums, and other fixed costs that continue even when the business owner or key employee is incapacitated.

Overhead expense insurance is a crucial risk management tool that business owners should consider to ensure the business’s financial stability and continuity in the face of unexpected disabilities.

• Business Continuity: It ensures that the business can continue its operations in the absence of the owner or a vital team member, preventing potential disruptions that could lead to financial instability or closure.
• Protects Personal Finances: Overhead expense insurance relieves the burden on the owner’s personal savings or assets, as it covers the ongoing costs of the business during a disability, preventing financial strain.
• Attracts Investors and Creditors: It can make the business more attractive to investors and creditors, as they see a contingency plan in place for continued operations.
• Peace of Mind: It provides peace of mind, knowing that the business can weather financial challenges caused by a disability and has a safety net for ongoing expenses.

• Less than eight owners for fee-for-service businesses
• Less than four owners for other types of businesses

• Between the ages of 35 and 55
• Critical to the continued earning of business income
• In occupations with little to no manual duties, such as corporate executives, accountants/CPAs, attorneys, business owners, dentists and medical professionals