BOE Policy
Posted by Administrator on Oct 9, 2008
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Business Overhead Expense (BOE) insurance is a policy designed to reimburse a business for overhead expenses in the event a business owner becomes disabled. This is not the same as personal disability insurance which usually pays benefits to age 65. This pays a shorter benefit of one to two years after a waiting period. Generally, there are two conditions which must be met to trigger the payment of benefits: One, is total disability due to injury or sickness must be present and two the expenses covered by the policy must be incurred. It is generally considered that no business can stay open more than two years if the owner is disabled and the business will either be shut-down or sold. If there is more than one owner, this policy also works.If there is a business partner each partner can take out a policy to accommodate their share of the expenses.The benefits are treated as taxable income when paid. The premiums for the business overhead expense is legitimate and tax-deductible expense.