Guardian Disability Insurance Brokerage

How To Protect Your Business With Overhead Expense Disability Insurance?

Berkshire's Overhead Expense disability insurance was designed with the cash-flow needs of business owners in mind. If you should become disabled, Berkshire will help you keep your business strong by covering the normal, necessary and customary expenses incurred to run your business - including mortgage payments or rent, utilities, salaries, taxes, interest on debt, loan payments and more. Please see a specimen policy for complete details.

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• Premium payments are tax-deductible as ordinary and necessary business expenses
• Overhead Expense benefits received during your disability are taxable upon receipt: however, they are used to pay business-related expenses that are tax-deductible, so the net tax impact is neutral**.

You can request a custom overhead expense insurance quote on our web site, and we offer an interactive worksheet to help you figure out what expenses you need to have covered. Don't buy overhead expense insurance for your total monthly overhead. If your monthly overhead is $20,000, figure out which of these fixed expenses would continue in the event of your disability. When you take the time to review your schedule C, normally you can find expenses that would indeed stop in the event of your disability. So while you are working your total monthly overhead is $20,000, while you are disabled the overhead may actually only be $12,000. Make sure you only purchase an amount you truly need during a disability. The underwriters at Berkshire will make recommendations on monthly benefits during the underwriting process.

* See Overhead Expense Policy Form 4200 for details, conditions and limitations.
** This publication is offered for the purposes of education and information only and should not be considered tax or legal advice. For information on your specific situation please consult your tax or legal advisor.

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Call 888-513-2300