Broker Check

Business Overhead Expense -NO this is not a new product

| July 17, 2019

As a business owner one of the most important things you have to worry about is making sure there is enough revenue coming through the doors in order to pay for all your expenses, such as rent/mortgage, payroll, insurance, utilities, internet, etc. The list could go on and on.   You have taken the time to meet with your insurance agent to insure if you become disabled; your income will be protected for you and your family. Here the question – Where is the money going to come from if you’re disabled to pay all the aforementioned expenses?? Here are Innovative Financial Group – Atlanta, we are an independent full service financial services operation who helps our clients answer this question and much more.

So what does Business Overhead Expense (BOE) do for me and my business?

BOE keeps your business running at the time that is needed the most, when you can’t drive the revenue to pay the expenses. BOE is disability insurance for your business, meaning this contract will pay all the expenses related to running your business. That includes paying salaries, rent/mortgage, utilities, etc. Does this sound like a new concept or idea? It might as most insurance or financial folks really don’t talk about it much. BOE has been around for a long time.

Benefits of BOE

So let’s dive a little deeper and find out more. Business Overhead Expense (BOE) is designed specifically to keep a business running in the event of a disability to a key sales person or owner. In your company, what percent of the revenue is created either by the owner or a key sales person? 80%, 85%, maybe 90%? Why not protect one of the most important parts of the business?  As I mentioned previously, BOE will pay for the expenses related to running your business.

  • Rent/Mortgage
  • Salaries of employees
  • Utilities
  • Insurances
  • Loans

Who needs this type of coverage?

Does having Business Overhead Expense coverage make sense for my company?   As I mentioned earlier in the article, BOE is disability insurance for your business. If your company has high monthly expenses, this may make sense to take a look. The coverage can cover as much or as little of your expenses that you desire. I have clients who use this to only pay for the salaries of the employees or only to pay for the rent/mortgage. The coverage can be designed and used specifically for you and your company.  

Insurance is designed to protect what is most important to you. Your family, your income, and now the operation of your business. Make sure you work with an independent insurance advisor who can provide quotes from several top carriers. If we can be a resource evaluating your needs, discussing current quotes or reviewing existing coverage, please connect with us at