Business Overhead Expense Insurance

Overhead expenses, such as rent, utilities, and interest must always be paid. But if a key person becomes disabled, these bills may be difficult to pay. Business Overhead Expense Insurance can help cover some of these costs.

Advantages & Considerations

  • An additional monthly income can pay overhead expenses while the key person is disabled
  • Premiums are a deductible corporate expense so long as costs are deemed an ordinary and necessary trade or business expense
  • Disability benefits are taxable when received by the corporation, but are offset by tax-deductible overhead expenses when paid

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