RSS Feed
Business Overhead Expense Insurance
What is Business Overhead Expense Insurance?
The so called Business overhead expense or the [BOE] insurance was intended to compensate a business for overhead expenses on the event when a business owner becomes disabled. This one is not similar as personal disability insurance which was usually to pay benefits from aged 65. business overhead expense rules is paying a shorter benefit from one to two years after the waiting exclusion period. This is basically considered that no business can stay open for more than two years when the owner is disabled and the business is either shut-downed or sold.
If a disability occurs, there are mainly three things that are sure to happen from a business owner:
1. regular living expenses continues to occur.
2. business expense continues to occur and also
3. most unfortunate time, income earned from the business will be severely interrupted.
The rule works where there are more than one owner. When there’s a business partner, each of the partners will take out a rule to accommodate their shares of expense.
The Premiums paid for business overhead expenses insurance is legitimate, tax deductible business expense, but, the benefit is treated as taxable income if it is being paid.
There are two (2) circumstances that must be net in order to trigger the payment of benefit.
1. total disability due with sickness and injury, should be presented
2. Expenses covered by the rules should be incurred during disability.
Usually, eligible business overhead expenses are the following:
• employment taxes
• employment salary
• employment benefit cost
• principal and interests on mortgage business property
• utilities
• rental payment for the property and equipments
• business insurance expenses
• accounting and also legal fees
• Interest on business depts.
• General office supply
• Property tax
With Different Agreement and with insurance rules within business, should be integrated with overall plan including objectives of the business, cautious consideration should be given with the selection of the plan which is correct for your business, and to the methods of funding your plans.
Material containing only major descriptions and it is not a solicitation to advertise any insurance product or security neither is intended as any financial, tax advice. For more information regarding specific insurance requirements or conditions just contact your insurance agents
For more information: www.oneshopinsurance.com