Discover how Business Overhead Expense (BOE) insurance protects your business from bankruptcy if you become disabled. Learn about coverage, costs, and tax benefits.

The "What If" Scenario Every Founder Ignores

You’ve poured your blood, sweat, and tears into building your business. You’ve planned for market shifts, economic downturns, and tough competition. But have you planned for the most critical risk of all—what happens if you are suddenly too sick or injured to work? Here is a sobering fact: According to industry data, 1 in 3 people will experience a disability lasting 90 days or longer before they reach the age of 65. If you were suddenly taken out of the equation for three months, who would pay your office rent? Who would cover your employees' salaries? Your personal health insurance will pay your hospital bills, but it won’t keep your business doors open. This is the exact problem Business Overhead Expense (BOE) Insurance solves.

What Does Business Overhead Expense Insurance Cover? (The Facts)

Think of BOE insurance as life support for your business’s bank account. If a doctor says you cannot work due to an injury or illness, this policy steps in to reimburse you for the fixed, everyday operating expenses required to keep your business running smoothly while you recover.

• Commercial Rent or Mortgage Payments: Keeping your physical location secured.
• Employee Salaries: Paying the wages of your non-revenue generating staff (e.g., receptionists, HR, IT).
• Utilities & Services: Electricity, water, internet, and phone bills.
• Property Taxes & Insurance Premiums: Keeping your business legally compliant and insured.
• Equipment Leases: Monthly payments on company vehicles, copiers, or heavy machinery.
• Accounting and Legal Fees: Ongoing professional retainers.

How Much Does Business Overhead Insurance Cost?

When business owners hear about BOE, their first question is usually: "This sounds expensive. How much is it going to cost my bottom line?" The truth is, it’s incredibly affordable. While exact premiums vary based on your age, health, and occupation, a good rule of thumb is that BOE insurance typically costs between 1% and 3% of the total monthly benefit amount. For example, if your business requires $10,000 a month to stay afloat, your premium might only be $100 to $300 a month.

The Best Part: Is Business Overhead Expense Insurance Tax Deductible?

As a business owner, you are always looking for smart tax strategies. Here is the good news: Yes, the premiums for Business Overhead Expense insurance are generally tax-deductible. According to the IRS, because BOE premiums are considered a "necessary and ordinary" business expense, you can deduct them from your business’s taxable income. (Note: We are insurance experts, not accountants. Always verify with your CPA!)

Don’t Leave Your Legacy Unprotected

Your business is your greatest asset. You insure your car, your home, and your inventory—doesn't it make sense to insure the very engine that generates your income? Don't wait until a medical emergency forces you to make impossible financial choices. Protect your employees, your clients, and your life’s work today. Contact the experts at DMPG for a free consultation. We will help you calculate your exact overhead needs and find a policy that fits your budget.