An Otolaryngologist‘s income will abruptly stop when a disability occurs but the demands of your office, staff and other expenses will not. So what do you do to protect your business while you are laid up? Your specialty specific personal disability protection will cover most of your personal expenses but that’s where it stops. Enter Business Overhead Expense Protection, better known as BOE. This is a special type of disability protection that specifically protects business and practice owners like Otolaryngologist’s. Business Overhead Expense Protection (BOE) helps cover the overhead expenses of you the owner while you are unable to run the business or ENT’s practice. The benefits paid by Business Overhead Expense policies enable you to maintain your ENT’s practice until your return or you decide to sell.
Business Overhead Insurance Covers These Expenses:
Most office salaries (except for you or other doctors)
Accounting and Legal Fees
Utilities
Property Taxes
Business insurance premiums
Depreciation of business owned equipment
Professional dues
Rent or mortgage interest
Additional fixed expenses
Critical Riders for Business Overhead Expense:
There are similarities between BOE and personal policies but it is important to grasp the differences.
Waiting Period – A typical BOE will come with a 30 day waiting period.
Benefit Period – A Otolaryngologist will often sell his/her practice or sell off the assets of the business if he/she is unable to return to work within a year. For this reason a 12 month benefit period is usually enough. However in the event it is needed, 18 to 24 month payouts are and option
Renewable – This type of coverage should be guaranteed renewable and non-cancelable.
Future Increase Option (FIO) – This provision enables the ENT’s to purchase additional benefits in the future without having to go through any medical exams. Financial insurability is required.
There you have it in a nutshell. You already know that personal income protection is not something you should be without. Now you know the importance of protecting your ENT’s business with a Business Overhead expense policy. You put a lot of blood sweat and tears not to mention time and money into building a solid practice. Don’t let a disability wipe you out. If you need assistance of advice please contact us at www.incomeprotectionspecialist.com. We are here to help.
