Overhead Expense Protection Insurance in Canada

Also called Business Overhead Expense (BOE) Insurance in Canada

This new video was produced by our partners at PPI Solutions. If you are a business owner who is involved in the day-to-day operations of your business then this video is for you. Understand the risks a disability could have on your business and the ongoing operating expenses that will not immediately stop if you are unable to attend to your business affairs.

Video Transcript of Overhead Expense Protection Insurance

If you’re a professional or business owner and actively involved in your business on a day-to-day basis this message is for you!

You know the importance of your health and well-being to the viability of your business. If you’re like most business owners – You’re the largest asset.

You’ld be difficult to replace. You most likely have financial responsibilities like employee salaries, rent, utilities, loans, property taxes – the list goes on.

But what if something happened to you. What if you were suddenly unable to work because of an injury or illness? Those ongoing expenses aren’t going to go away over night.

Do you have a means of protecting yourself and your business from unforeseen events. This is the promise of Overhead Expense Protection Insurance.

Overhead expense protection is designed to cover the costs of fixed expenses and protect your important assets in the event you become disabled.

Most business owners have fire insurance. However the chance of an injury or accident affecting you is much more likely.

As you age the chances of being disabled increase dramatically. This graph shows the chance of an average Canadian suffering a disability prior to the age of 65. If you suffer a disability lasting longer than 12 months the likelihood of that disability lasting 2 years or longer increases with age.

Imagine your business without you for a year, or more. Would you be able to bring in a replacement? Would you have to consider selling your business? In that case, could you keep key staff and personnel on payroll while you did? What if you were unable to return to work in the same capacity? Could you financially survive any of these events?

As a business owner or professional you know these questions need to be addressed sooner rather than later.

When considering business overhead protection there are two key questions:

• 1. How much money will it take to protect your business? This would include the fixed costs of your business – typically employee salaries, rent, utilities, loans, property taxes and other fixed expense items.
• 2. Where is the money going to come from?

Many businesses operate with a line of credit. Would you bank continue to fund your line of credit? Would they also consider a contract to extend that line of credit?

Would you want to use personal assets to support these costs, such as selling your home or cashing in your RRSPs? In your absence could you support the business from current revenues? What would that cost?

Let’s say you suffered a disability that lasted 6 months. If your overhead expenses were currently $10,000 per month you could easily accumulate $60,000 of liabilities that would need to be recovered upon your return.

The answer for business owners and professionals is an Overhead Expense Protection Plan, if you qualify.

As a business owner you can purchase coverage that is specially designed for your situation for pennies on the dollar. If you’re a healthcare professional such as a doctor or dentist there are special programs that can be designed to fit your precise needs.

For peace of mind and to ensure that unforeseen events will not have a catastrophic impact on your financial well-being, Overhead Expense Protection is the answer.

Here are the important things to keep in mind:

• Overhead Expense Protection is designed to cover the costs of fixed expenses and protect your important assets in the event you’re disabled. Typical qualifying expenses for overhead expense protection could be employee salaries, rent, utilities, loans, property taxes and other fixed expense items. These expenses can be covered with pennies on the dollar.
• Overhead Expense Protection will allow you to find replacement professionals or owners that can come in and help continue the value of the business you have worked so hard to build.
• Overhead Expense Protection will allow you to retain key employees and keep creditors and suppliers confident in your business while you convalesce and prepare to return. What if you couldn’t return?
• Overhead Expense Protection would allow you to find an orderly dispersal or sale of your business. It would help you provide a better opportunity to maximize the value of your enterprise, and it’s a tax deductible expense.

Business Overhead Expense Protection – talk with your insurance advisor to design a plan that fits your needs.

The video was produced by PPI Solutions and posted by +Mitch Reynolds. If you found the video interesting or it made you think, please feel free to share your comments below. Liking us on Facebook, giving us a +1 on Google or Tweeting this video about Overhead Expense Protection Insurance would be very much appreciated.

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