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Business Overhead Protection

Business Overhead Protector® reimburses business owners for overhead expenses if they become disabled, so their businesses can continue to operate.

Typical covered expenses include:

  • Mortgage interest or lease payments
  • Employee wages
  • Utilities
  • Business insurance premiums

Included With Every Policy

Business Expense Coverage

We cover the following business expenses while your client is disabled:

  • Salaries, fees wages, benefit payments and employment taxes for employees
  • Rent and lease payments for furniture, equipment and premises
  • Utility costs including phone, electricity, heat and water
  • Laundry, janitorial and maintenance service costs
  • Property, liability, malpractice and business insurance premiums
  • Professional, trade and association dues
  • Business property taxes
  • The greater of depreciation or principal payments on business loans on business property
  • Interest on business debt existing on the day the disability begins
  • Legal, accounting and similar business fees

Please refer to the policy for a complete list of covered and non-covered expenses.

Renewable After Age 65

With the Renewal Option, your client may ask to continue the policy beyond the termination date if he or she is working at least 30 hours per week and is not disabled at the time of the request. Certain limitations apply.

Total Disability Benefit

We pay benefits if the insured cannot work in his or her regular occupation because of a total disability, as defined by the policy.

Partial Disability Benefit

While the insured is partially disabled, we'll reimburse 50 percent of the covered business expenses (up to the policy maximums) for up to six months. See the policy for more details.

Benefit and Expense Carry-Forward Feature

While the insured remains continuously disabled, unused benefits and unreimbursed expenses may carry forward to future months of continuous disability (subject to policy limits).

Conversion Option

If your client's needs change after two years from the effective date and before turning age 60, he or she may request conversion of this policy to an individual disability income policy. Certain limitations may apply.

Waiver of Premium Benefit

While your client is disabled, we will waive premiums due and refund any premiums due and paid since the disability began.

Presumptive Total Disability Benefit

We presume your client is eligible for the total disability benefit if an injury or illness results in loss of speech, hearing in both ears, sight in both eyes or the use of two limbs, as defined by the policy.

Survivor Benefit

If your client dies while receiving total disability benefits, we will pay the owner or the owner's estate up to three times the base amount, but not more than any remaining maximum benefit. This benefit is not available in some states.

Cosmetic or Transplant Surgery Benefit

We pay a monthly benefit if the insured is disabled more than six months after the policy's effective date from a sickness or injury caused by cosmetic or transplant surgery.

Optional Riders

Salary Replacement Rider

This rider is available to occupation classes 3A, 4A and 5A at no additional cost. This rider allows your client to hire someone (other than a family member) to perform his or her duties and to have that person's salary included as a covered expense.

Residual Disability Rider

This rider adds a residual disability benefit and recovery benefit to your client's coverage. We'll pay a residual disability benefit if your client's business loses at least 20 percent of its income while he or she tries to return to work. We may also pay a limited recovery benefit for up to 12 months if, immediately after a disability for which your client received benefits, your client returns to work for at least 30 hours per week in his or her regular occupation.

Future Purchase Option Rider

As your client's business grows and as the expenses increase, this rider allows your client to purchase increased benefits at two-year intervals, regardless of health (subject to financial underwriting requirements).

Contact your General Agent to learn more about Business Overhead Protection.

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