Business Overhead Insurance
As a business owner, you likely play an integral part in your company’s revenue stream. That’s why if you sustain a disability, then your business’s income might drop. That could mean that your company will face financial challenges that you cannot afford, and you’ll want to reduce the chances of the business failing just because you no longer can work.
One way to shore up your operating expenses is by buying business overhead insurance coverage. This coverage will help you make sure that your business can continue to pay its bills even though the money you bring in might go away. It is diverse and beneficial coverage for all business owners.
For help establishing a quality disability insurance portfolio, come to Brokerage Solutions, Inc. We offer coverage options designed to meet the needs of all businesses in convenient ways.
Call us at (319) 393-9410 for more information, or just request your free policy quote now!
What is business overhead insurance?
To understand business overhead insurance, you must understand what overhead expenses are in the first place. These are the costs that you must pay to keep the doors open and the lights on.
They might include:
- Utility payments
- Debts and mortgages
- Insurance premiums
- Employee salaries
- Regulatory fees
It’s easily understandable why, if your company’s income drops, you might face a big struggle to pay these expenses. You are a key contributor to the company, your disability would be the greatest blow of all. The money you have brought in could dry up, and your company might face insolvency.
With business overhead insurance, however, you’ll have the guarantee that you can keep the lights on despite these challenges. You are a company principal and key person whose disability could impact operations, then this coverage can make sure the business is able to maintain a flow of income during your absence.
What will it cover?
Once you buy a business overhead policy, you enable the business to be able to continue to operate in case of your incapacity. This coverage can help you replace most of the revenue that you once brought into the company, often for up to two years. Therefore, you can keep the company afloat.
Plus, you might also be able to add policy riders to your plan to help you cover:
- The salary of a temporary replacement
- Market increases in overhead costs
- Partial disability benefits that will still pay even if you can still work, but in a limited capacity
How much coverage do I need?
To determine how much overhead insurance you need, you will need to calculate your company’s operating expenses in full. Still, you can only choose a benefit amount that reflects how much of these expenses are covered by you as a key person in the business. Therefore, some subtraction might be necessary. Your Profit & Loss statement from your accountant will give you the amount you need to cover.
Here at Brokerage Solutions, Inc., we are experts in helping you determine how to transform your calculated overhead into the benefits you need. We only recommend policy options that are best suited for your company, and you can rely on us to apply a professional eye to all your policy service needs.