Combined with personal disability insurance?

Yes \u2014 BOE for business + own occupation for personal.

Pre-existing condition exclusion?

Yes \u2014 apply before health changes.

Self-employed eligible?

Yes \u2014 sole proprietor included.

Through business insurance broker or specialty disability writer.

Business Overhead Insurance

BOE insurance: pays fixed business expenses if owner disabled. Rent, payroll, utilities. $50K-$100K typical coverage. Tax-deductible premium.

Monthly Fixed Overhead ($)

Owner Essential to Operations?

Elimination Period (days)

Coverage

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Annual Premium

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Coverage Calc

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Monthly overhead	—
Owner essential	—
Elimination period	—
Total coverage	—
Annual premium	—

Business Overhead Expense (BOE) insurance covers fixed business expenses (rent, payroll, utilities, insurance) if the business owner becomes disabled. Different from personal disability insurance — keeps the business operational. Tax-deductible premium for business owners.

Coverage Components

Rent/mortgage. Employee salaries + payroll taxes. Utilities, internet, phones. Equipment leases. Professional liability insurance. License/permit fees. Replacement worker compensation. NOT covered: owner's personal salary, profits, or income.

When BOE Is Critical

Solo or 1-3 employees: owner critical = business stops if disabled. Professional practice (dentist, doctor, attorney): unique skills. New business: insufficient cash reserves. Heavy debt service: must cover loans during downtime.

Tax Treatment

Premiums: 100% tax-deductible business expense. Benefits: NOT taxable (since you didn't deduct against ordinary income). Different from personal disability insurance (premiums non-deductible, benefits tax-free). Speak with CPA.

Last updated May 2026. Sources: III Business Insurance.