As a solo practitioner or partner in a practice, you’re responsible for paying monthly overhead expenses that keep your business up and running. If something happens and you’re unable to work due to a disabling injury or illness, the personal disability insurance you have won’t be enough to cover your payroll and business operating expenses.
1. Preserve the Viability of Your Practice
The purpose of TMA Member Business Overhead Expense Insurance, issued by The Prudential Insurance Company of America, is to help keep the doors of your practice open if you’re unable to generate your portion of business revenue due to an illness or injury. The plan can help protect your practice for up to 24 months. And after you satisfy your elimination period, you don’t have to be permanently disabled or confined to your home or a hospital to receive benefits.
2. Cover Essential Business Operating Costs
Operating costs typically run as high as 60% of your practice’s revenue. TMA Member Business Overhead Expense Insurance will reimburse your actual overhead expenses—up to the benefit amount you select. A TMA Insurance Trust advisor can help you calculate the total amount of coverage for your individual needs, based on expenses such as:
- Rent and utilities
- Staff salaries, benefits and payroll taxes
- Office supplies and equipment
- Depreciation of equipment
- Maintenance services
- Loan payments
- Property taxes and more
3. Retain Your Most Loyal Employees
Unless you can afford to cover the salaries, benefits and payroll taxes of your employees while you recover, your employees will leave and you’ll have to retrain a new staff at a later date.
4. Maintain Your Professional Momentum
You’ve spent time, money and energy caring for patients in your community, building a practice that is known and respected. Having a policy in place makes sense, especially when the cost of going out of business or starting over at another time is especially high in today’s healthcare environment.
5. Protect Your Personal Finances
You can’t expect your personal disability plan to do double duty. It’s designed to cover your family and personal expenses, not pay your business operating expenses. Without having a TMA Member Business Overhead Expense policy in place, you’d most likely have to use personal savings to keep your business afloat while you recover or decide the future of your practice. This could delay or end the plans you have for personal funds. A TMA Insurance Trust advisor can offer an affordable way to help protect your personal finances from such a scenario.
For over 60 years, TMA Insurance Trust advisors have been serving Texas physicians, their families and staff. TMA Insurance Trust prides itself on offering unbiased information and strategies to members, along with exclusive group rates on a range of the highest-rated plans in the industry.