Overhead Expense insurance reimburses monthly business expenses in the event of a certain person’s disability, most often the owner or a key executive or manager.  Usually, the business owns the policy and the business generally is paid back for actual expenses if something happens to that critical employee, often after a waiting period.  Overhead Expense is a transitional type of coverage which generally lasts for 12-24 months while the individual either recuperates and returns or is replaced.

If revenue is compromised, it might put your employees’ salary in jeopardy, even resulting in layoffs after a certain period of time.  Your monthly expenses still must be paid. If your absence or the absence of a key individual would threaten your company’s ability to meet these costs, obtaining Overhead Expense insurance may be a smart move.

Typically the following fixed expenses are reimbursed:

• Payroll
  
  
• Accounting and legal fees and services
  
  
• Rent or mortgage payments
  
  
• Lease of equipment
  
  
• Property and unemployment taxes
  
  
• Liability insurance
  
  
• Utilities
  
  
• Professional fees, dues, memberships or subscriptions
  
  
• Other fixed expenses that you normally incur