Written on
November 3, 2011 – 2:01 am | by Olivia Oom
Youve purchased an individual disability insurance policy to protect your income. This was a wise decision. However, if you are a business owner (including private practice physician or dentist), have you considered what would happen to the office you worked so hard to establish if you couldnt work due to a disabling injury or illness?
Overhead Expense Disability Insurance
Thankfully, there are policies available that will help you meet the expenses of running the office while you are disabled. If you cannot work due to a disability, an Overhead Expense (OE) disability insurance policy will reimburse your business (or practice) for expenses such as rent, telephone, utilities lease payments, interest on business loans, etc.
Overhead expense policies for professionals will cover some additional costs not found in traditional overhead expense policies, including the salaries of your employees (except for those who are in your same profession). If you are a physician, for example, the overhead expense policy will pay the salary of your staff but will not pay that of other physicians in your office. However, some policies will cover part of the salary of a temporary replacement for you.
Disability Buy-Out Policy
Physicians or Attorneys who are partners in a group should also consider a Disability Buy-Out policy. You might already have in place a buy-out agreement designed to buy-out the remaining partners in the event of the death of a partner and, if you do, you probably have set up life insurance policies as funding vehicles for the buy-out. Disability Buy-Out insurance would work in a similar way, except in this case, the buy-out would be funded with a disability policy the remaining partners would buy-out the disabled partner using a Disability Buy-Out policy.
Whether you have an individual disability insurance policy or are in the market for one, dont overlook the benefits provided by business disability policies.
If you would like a quote for any business disability policy or an individual disability insurance quote, feel free to contact us any time.
Tags: Business
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