The unasked question to small business owners is, What would happen to your business if you were to get sick or hurt and couldn’t work for a lengthy period of time?
Most small business owners could not get away for a long weekend, let alone several months. Many would likely have to close the business until they recover and then asses if the business could be revived or if there is any business left to sell.
Business Overhead Expense (BOE) can help business owners protect their business and employees if the owner needs time to recover from a serious illness or injury.
If a small business owner suffers a disability and is unable to work, it not only affects the business, it impacts all of the employees as well. Many small businesses are tight-knit families who rely on each other for support. If the business is unable to produce because of the missing owner, the employees may have to start looking for new opportunities.
The BOE Answer
The need is simple to set up: Many small businesses cannot survive without consistent production, and the owner is the primary producer. (Dentist, CPA, Attorney, Physician) What happens to the business when something happens to the owner?
The answer: Business Overhead Expense (BOE) Insurance.
A BOE plan helps to keep the business in operation in the event the owner becomes disabled and couldn’t work for a period of time. BOE reimburses the business for all their fixed operating expenses in order to keep the doors open while the owner recovers from an injury or illness.
This assures there will be a business to come back to once recovered. If a major illness or accident prevents the owner from coming back to work, there will still be a business to sell that has not depreciated because of the owners absence.
Also, BOE allows for tax deductible premiums when insuring for the potential disability of the self-employed person. Often, small business owners are candidates for short-term and/or long-term DI as well.
Speak with your business owner clients today to see how you can help them protect the most important asset they have, their business. Please contact your Disability Income Marketing Manager to start planning your client’s BOE plan today!