As an employee, it can be extremely challenging to pick the supplemental benefits that are the best fit for you. But deciding which insurance to buy as an employer can be even more difficult. One of the most common insurance options for small businesses is business overhead insurance. But how do you know if it’s worth it? Today, we’ll give you an overview of business overhead insurance so that you can decide for yourself.
What is business overhead insurance, and who could use it?
What does it do?
Let’s start with the most basic question: what does business overhead insurance do? As a small business owner, we’re sure you wonder from time to time what would happen to your business if an illness or injury prevented you from working. The benefits of personal health or hospital indemnity insurance are widely known and understood. But what about your business?
Business overhead insurance exists to protect your company in just such a situation. If a qualifying illness or injury renders you unable to work for an extended period, you will be entitled to monthly payments. This financial compensation can help ensure the smooth operation of your business in your absence.
Who can purchase it?
Simply put: if you’re a business owner, you probably qualify for business overhead insurance. So long as you have been in the position for at least two years, and are between 18 and 64 years in age, it is likely to be a good option for you.
Historically, business owners who work from home have not been found eligible for business overhead insurance. Still, the times are changing and there are numerous exceptions, so it’s best to consult an expert before deciding it isn’t possible or worth it for you.
What illnesses or injuries qualify?
As you could probably guess, not every illness or injury can entitle you to financial compensation. A common cold should not interfere too much with your ability to work, but the flu might.
In order for you to be eligible for financial compensation, your illness or injury must meet the insurer’s definition of a ‘disability.’ This varies from policy to policy, but if it prevents you from carrying out your work and has met your insurer’s elimination period, it is eligible.
What exactly does it cover?
Now that we’ve given you a brief overview of how business overhead insurance works, you might be wondering: what business expenses does it cover? Once again, this varies significantly, but here are some of the business overhead expenses that may be covered by your policy:
- Payroll
- Employee benefits
- Utilities, equipment, and custodial expenses
- The rent or mortgage of your office space
Armed with the information we’ve provided you with today, it’s ultimately up to you to decide whether or not business overhead insurance is worth it. But if you ask us, we think it’s worth every penny.
Partner with Malden Solutions Today
Malden Solutions has a wealth of expertise in providing employer insurance solutions, HR solutions, and individual insurance solutions to businesses both big and small. Our team of seasoned professionals can help you navigate the rapidly-changing world of insurance with ease. We partner with businesses and individuals throughout the country to provide our dedicated services for employee benefits but also work within our surrounding communities in Maryland, Northern Virginia, and Washington, D.C. Contact us today to learn more about how we can provide effective, dynamic solutions for your business. Stay connected with us on Twitter, Facebook, and Linkedin.