Business overhead expense insurance pays your business’s fixed monthly costs, such as rent, utilities and staff wages, while you can’t work. Personal disability insurance replaces part of your own income. They’re taxed differently too: BOE premiums are generally deductible, and its benefits are taxable business income, usually offset by the expenses they pay, while personal disability benefits are generally tax-free when you pay the premiums yourself. Many owners have both.
Business overhead expense insurance
How does business overhead expense (BOE) insurance differ from personal disability insurance?
Reviewed by Garrett Agencies Ltd., October 2026. How we write
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More about business overhead expense insurance
Pays fixed costs such as salaries and rent if the owner can’t work because of illness or injury.
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