Business Overhead Expense


Tax Deductible Your Overhead Expense Policy has been designed to meet the requirements of Internal Revenue Service rulings which allow certain business and professional men and women who are sole proprietors, partners and stockholders/employees of a business to use premiums for the policy as direct business expense for tax deduction. This is based on current tax code.

The Options are Few  -  If you become disabled, what can you do?

*Close until you recover?

When you close your business temporarily, you risk losing your customers – and employees – permanently. Your customers rely on your goods and services. Your employees depend on their jobs for their income. Neither can wait on your recovery indefinitely.

*Hire a replacement?
Only you can determine who would best fill your shoes. But if you’re disabled, you mostly likely won’t be in a position to search for, hire or train a part-time replacement.

*Use some of your individual benefits to help pay business expenses?
Possibly. But as individual disability benefits are designed to help meet your personal financial needs if you become disabled, you may not be able to stretch those benefit dollars far enough to cover business expenses as well.

For example: Carol is a floral shop owner. Her gross monthly earnings are $12,000, her monthly business expenses are $8,000 and her take home pay is $4,000. Her individual disability policy will be based on her take home pay. At 60 percent of $4,000, she would receive a $2,400 monthly benefit – not enough to cover even half of her monthly business expenses. And that’s without taking her personal living expenses into account.

Sell your business?
This option may not be viable or profitable. An emergency liquidation sale rarely generates top dollar on your investment. And it leaves you with nothing to come back to when you recover.

Be Prepared
Insuring your ability to keep your business in operation is every bit as important as insuring your life, house or car. You have assets – but the solvency of your business enables you to retain them. No matter how comprehensive your medical coverage may be, not matter how much individual disability insurance you have, it’s important to make sure you’ll have money available to cover monthly expenses for your business if you become disabled.

Business Overhead Expense insurance* from Mutual of Omaha Insurance Company provides benefits to help you cover fixed monthly business expenses if you can’t work due to a covered illness or injury. Expenses like:

• Employee’s salaries
• Rent
• Utilities (heat, electricity, etc.)
• Maintenance
• Taxes
• Interest (not principal) on business loans

Langley Insurance & Financial Enterprise offers free, comparative quotes on health insurance from multiple insurance carriers so you can get the best possible rate.

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