Halley Dodson, LLC Halley Dodson, LLC

Group & Business Overhead

Group Disability

This coverage is offered through an employer/business to provide income protection to employees.    Some employers provide short term benefits, some long term benefits, and some provide both.  Typically, there is little to no medical underwriting on group disability policies so pre-existing health issues are not an issue depending on the size of the group and insurance company.  Employers may offer a set amount of coverage like $2,000 per month per employee but will generally provide coverage for a percentage of salary like 50% or 60% of salary.  Larger groups may separate employees into different classes such as union employees and non-union employees or management employees and non-management employees.

Each class has a separate level of benefits & premiums.  If an employee receives group disability benefits, the income will be taxable just as earnings would be.  Group disability coverage is far less expensive than group health insurance and can provide employees with benefits they may not be able to get on their own.

Business Overhead Expense Coverage

If you own a business, this policy will pay your business expenses should you become disabled. Expenses like your rent/mortgage, utilities, payroll, liability insurance, property taxes, and many others will be paid by this coverage.  Business Overhead Expense (BOE) has a waiting period of 30 or 60 days and a benefit period of 2 to 3 years.  During this time you can determine if you will be able to get back to work or if you should sell the business to someone else. All the while, your business expenses are being paid by your BOE policy.

This coverage eliminates the need to quick sell your business to avoid bankruptcy or foreclosure.  It will keep your employees working and getting paid. It will make sure your business continues to run while you can’t be there.  This lesser known type of coverage could save your business.  Normally you can qualify for a large level of coverage for a reasonable premium.  Premiums are tax deductible for most business owners as a qualified business expense.  You are covered for work or non-work related injuries or accidents & illnesses.  Most insurance companies offer comprehensive rehab and return to work training.  You set the level of coverage you need ie. $5,000 per month, $10,000 per month, etc.


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