What Is Professional Overhead Expense Disability Business Insurance Coverage, And Do I Need It?

There are many types of business insurance policies, and one type of coverage is professional overhead expense disability coverage. What is this business insurance type, and what does it cover? Businesses which are small or privately owned and closely held usually depend on certain key individuals for the company to be able to operate and function efficiently. But what happens if the key person in a business dies? You can get a business insurance policy that is called a key man policy, which covers the death of the key person when it occurs. But if the key person were to become seriously ill or permanently or partially disabled, the business will lose substantial income and a key man policy will not cover this situation. This can cripple and destroy your business, but there is a policy which can help with this coverage called a professional overhead expense disability policy.

A disability policy for individuals will provide coverage for lost income the individual suffers as a result of the disability, but this will not help the business with expenses and operations while the key person is disabled. The business may still have fixed expenses, such as rent and other monthly obligations, plus the salaries of key staff members who are needed for the efficient day to day operations of the company. These expenses may result in the closing of your business if there is no insurance coverage to protect your business. A professional overhead expense disability insurance policy will help in this situation, because this policy is specifically intended to insure against this occurrence. This policy may cover the salaries of key staff that are crucial to the business, but it will not cover all employee salaries. A professional overhead expense disability policy will usually also cover a temporary replacement by a qualified professional, to take the place of the disabled person short term. Rent or mortgage obligations for the business may also be covered, as well as payments on debts, including both the principal and interest amount. The average amount of your monthly taxes may also be covered under this policy type. The utility bills incurred by the business while the key person is disabled is another expense that is covered under almost all professional overhead expense disability business insurance policies. This type of coverage even covers most equipment maintenance costs, as well as postage costs and other incidental costs.

A professional overhead expense disability policy is normally very reasonably priced. Coverage of ten thousand dollars normally may cost a business one hundred dollars or less each month in premiums, which is a small amount compared to the benefit amount. Premiums for this insurance type are normally based on several different factors, including the age, health, and lifestyle of the key person being insured. Lead a healthy lifestyle and you will see savings on this monthly expense. You can also see savings by comparing different quotes to see which company offers your business the best rates and coverages. Why pay more if you do not have to?