Business Overhead Protection
This form of disability insurance is designed to provide financial help to a business should the owner suffer a disability, through accident or sickness, that prevents him or her from working. Business owners in small companies are the driving forces and revenue generators.
If for a medical reason they are suddenly unable to work, that source of revenue can dry up very quickly, leaving leases, mortgages, operating expenses, employees' wages, etc. to pay. This is where Business Overhead Protection can be a business saver.
Consider the example of a dentist with very skilled employees . He suffers a heart attack and is unable to work for six months. Not only would the dentist lose patients, but also valuable staff, and the outlay of money paying for his leased premises and equipment.
With Business Overhead insurance in place, his practice would receive a monthly amount from the insurer that would pay his monthly business expenses including employees' salary until he returned to work. The same scenario could be applicable to any small business where expenses would continue to occur even while there is no revenue being generated.
