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Protecting What Matters Most


Why Business Overhead Expense Insurance is Critical for Physicians

If you are a Texas physician who owns or co-owns a practice, you know there is a lot at stake in addition to your patients’ health. All of the time, energy, money and planning put forth for the practice to be successful should be protected – this is where an Office Overhead Expense Insurance policy comes into play.  

An overhead policy can help keep your office running smoothly in the unexpected event that you or another physician becomes disabled and cannot work. Adding up employee’s salaries, utilities, rent, taxes, equipment leases, and other miscellaneous fees, bills begin to mount quickly and can be an added burden upon the practice and the physician while recuperating. Office Overhead Expense Insurance can help keep the doors open and assist you in a variety of ways.
Here we’ve outlined ten critical benefits you should know regarding this type of insurance policy.

10 Critical Benefits of Overhead Expense Coverage 

  1. Protection when you need it - Office Overhead Expense Insurance begins working when you cannot work and have satisfied your elimination period. If you become disabled, even partially disabled, and your income suffers, you will receive payment of eligible expenses up to, but not exceeding,  the amount of your monthly benefit. You do not need to be permanently disabled or confined to a hospital or your home for benefits to be received.

  2. Help with expenses – Running a practice brings along many bills. An Overhead Expense policy can help you pay utilities , employee salaries, bills for leased equipment, certain car allowances, existing business loan interest, business insurance premiums, payroll or real estate taxes, and mortgage and rent interest payments.

  3. Tax benefits – Your monthly insurance premiums may be tax-deductible as a business expense when you file your federal income tax. Speak with your tax advisor regarding specifics for this type of insurance.

  4. Generous coverage amounts and timely benefits – When you determine your monthly expenses, you can choose a policy amount that offers benefits up to $35,000 a month, or even more in some cases. Your benefits will begin once you have been totally disabled for 30 continuous days in most cases.

  5. Future increase option – As a physician, some policies allow you the option to increase coverage without having to provide evidence of medical insurability.

  6. No-risk period – In Texas when you sign up for Office Overhead Expense Insurance, you can receive a “free-look” period for 30 days, with the ability to not accept coverage if you are not satisfied.

  7. Protect Long-term Disability income – With Office Overhead Expense Insurance, money does not have to be drawn from the disabled physician’s long-term disability policy to cover monthly business overhead expenses, saving that policy to be used to replace lost income, as it is intended.

  8. Protection for Partners – In a group practice with each physician owning office overhead insurance, the partners have the assurance that there will be funds to pay the disabled physician's portion of the total office expenses. Without this coverage the partners may be forced to pay this amount out of pocket.

  9. Overall protection – By obtaining this type of insurance, you and/or your group are protecting the practice, employees and patients from the effects of someone’s disability.

  10. Family protection – If the unexpected happens and the disabled physician dies while receiving these benefits, some policies include a provision that allows for a lump sum payment to be given to his or her spouse or dependent children equalling a multiple of the monthly benefit amount.

Office Overhead Insurance Tailored to Texas Physicians

While no one likes to think about a worst-case scenario, this coverage could prove to be valuable protection for your practice and partners. Let a comprehensive Office Overhead Expense Insurance policy help you keep your business moving in the case of a disability.

For additional information, feel free to reach out to us. We’ll partner you with an experienced advisor who can provide answers to any questions you may have and design a plan that’s tailored to your specific needs, whether you are an individual physician or a physician group practice owner or partner.

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