As a doctor or dentist who owns your practice, your business is not just a source of income—it’s a lifeline for your patients, your employees, and your professional reputation. But what happens if you’re unable to work due to a disabling illness or injury? While personal disability insurance protects your income, it doesn’t address the ongoing costs of running your practice. That’s where a Business Overhead Expense (BOE) disability insurance policy becomes essential.

What Is Business Overhead Expense Disability Insurance?

Business Overhead Expense disability insurance is a specialized policy designed to cover the fixed expenses of your practice in the event you’re unable to work due to a disability. These expenses typically include:

• • Rent or mortgage payments for your office
  • Salaries for staff
  • Utilities such as electricity, water, and internet
  • Equipment maintenance and lease payments
  • Insurance premiums (e.g., malpractice, property, and liability insurance)
  • Office supplies and other operational costs

The goal of this policy is to ensure that your practice can continue to operate smoothly while you recover, preventing long-term financial harm and preserving the integrity of your business.

Why Is It Crucial for Practice Owners?

1. Maintains Your Practice’s Viability

If your practice’s bills go unpaid, you risk losing everything you’ve worked so hard to build. Business Overhead Disability Insurance ensures that your practice remains operational, so your patients’ care isn’t disrupted and your employees don’t face layoffs.

2. Protects Your Financial Investment

Setting up and maintaining a medical or dental practice requires significant financial investment. Equipment leases, facility costs, and staff salaries don’t pause when you’re unable to work. This coverage ensures those investments are protected.

3. Provides Peace of Mind

The uncertainty of a disabling event can be stressful enough without the added worry of financial instability. Business Overhead Disability Insurance allows you to focus on your recovery, knowing your practice is in good hands.

4. Prevents Debt Accumulation

Without this policy, practice owners may need to take on substantial debt to cover overhead expenses during a period of disability. This can lead to long-term financial strain even after returning to work.

5. Safeguards Employee Retention

Your employees are an integral part of your practice’s success. This insurance ensures they continue receiving their salaries, helping you retain a skilled and dedicated team.

Key Features of Business Overhead Expense Disability Insurance

When considering a BOE policy, look for these important features:

• • Benefit Period: Policies typically offer benefit periods ranging from 12 to 24 months.
  • Elimination Period: This is the waiting period before benefits begin, often 30 to 90 days.
  • Coverage Amount: Ensure the policy covers all fixed expenses of your practice.
  • Tax Considerations: Benefits paid under these policies are generally taxable, but the premiums may be tax-deductible as a business expense. Consult with a tax professional for guidance.

How to Choose the Right Policy

Not all BOE policies are created equal. To find the right one for your practice:

1. Assess Your Expenses

Calculate your fixed monthly costs to determine the coverage amount you need.

2. Work with a Specialist

An insurance broker experienced in working with doctors and dentists can help tailor a policy to your unique needs.

3. Compare Providers

Evaluate different insurers for reputation, policy features, and customer support.

How to Choose the Right Policy

Not all Business Overhead Disability Insurance policies are created equal. To find the right one for your practice:

1. Assess Your Expenses

Calculate your fixed monthly costs to determine the coverage amount you need.

2. Work with a Specialist

An insurance broker experienced in working with doctors and dentists can help tailor a policy to your unique needs.

3. Compare Providers

Evaluate different insurers for reputation, policy features, and customer support.