In the dynamic world of business, continuity is paramount to success. However, unexpected events like illness, accidents, or injuries can disrupt operations and jeopardize the / financial stability of a company. Business overhead expense insurance (OEE) serves as a crucial financial safeguard, protecting your business from the potentially crippling effects of an owner’s disability.

What is Business Overhead Expense Insurance?

OEE is a type of disability insurance specifically designed for business owners. It provides monthly payments to cover the ongoing expenses of a business, such as rent, utilities, employee salaries, and loan payments, in the event that the owner becomes disabled and unable to work. This financial assistance enables the business to continue operating smoothly and avoid closure during the owner’s disability period.

Benefits of Business Overhead Expense Insurance

  • Protects business continuity: OEE ensures that your business can continue operating even if you are unable to work due to a covered disability. This prevents disruptions to your business operations, revenue streams, and customer relationships.

  • Preserves business value: By safeguarding your business from closure, OEE helps maintain the value and goodwill of your company. This can be crucial for attracting investors, securing loans, and ensuring a smooth transition of ownership in the event of the owner’s disability.

  • Provides peace of mind: OEE offers business owners peace of mind knowing that their business is financially protected in case of disability. This allows them to focus on growing their business without the constant worry of financial instability.

Who Should Consider Business Overhead Expense Insurance?

OEE is particularly beneficial for business owners who play a critical role in the day-to-day operations of their company. This includes sole proprietors, partners, and key executives whose absence could significantly impact the business’s ability to function.

How to Choose a Business Overhead Expense Insurance Policy

When selecting an OEE policy, consider the following factors:

  • Coverage limits: Determine the maximum monthly benefit you need to cover your business expenses.

  • Elimination period: This is the waiting period after the disability begins before benefits start. Choose an elimination period that suits your financial situation.

  • Benefit period: This is the duration for which benefits will be paid. Select a benefit period that provides adequate coverage for your circumstances.

  • Occupation class: The occupation class determines the premium rates based on the risk associated with your profession.

  • Additional options: Some policies offer additional benefits, such as partial disability coverage and business succession planning assistance.

Consulting with an insurance agent can help you navigate the complexities of OEE policies and select the coverage that best meets your specific needs.


Business overhead expense insurance is an invaluable investment in the future of your business. It provides essential financial protection against the unexpected, ensuring that your company can weather the storm of an owner’s disability and continue its journey towards success. By safeguarding your business continuity and preserving its value, OEE empowers you to focus on what matters most – growing your business and achieving your entrepreneurial dreams.

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