Business Overhead Expense Insurance
Frequently Asked Questions
I already have disability coverage. Why do I need BOE coverage? What does BOE insurance cover? How much BOE insurance do I need? What are the AICPA cash refunds? Will I be covered for successive disabilities? When will my coverage terminate? Are there any refunds with this Plan? How do I qualify for benefits?
I already have disability coverage. Why do I need BOE coverage?
You've worked hard to get to where you are today and you may have purchased disability coverage to replace lost income in the event you become disabled. If you own your business and are responsible for all or part of the overhead, then Business Overhead Expense (BOE) insurance can help ensure your business can stay open and running smoothly. Running your firm is expensive and those bills will continue to mount-even if you become disabled. BOE insurance can help pay employee salaries, rent, taxes, utilities, etc. so you can concentrate on your recovery and not have to worry about how you will pay your bills.
What does BOE insurance cover?
BOE Insurance covers office expenses that you typically incur while running your firm, such as:
- Charges for electricity, telecommunications, heat and water
- Employees' salaries or wages
- Cost of maintaining equipment
- Payments for leased equipment and furniture
- Interest on existing business loans incurred prior to disability
- Business insurance premiums
- Loan payments from debt related to purchase of firm
- Payroll taxes
- Rent or mortgage interest payments
How much BOE insurance do I need?
You should consider the amount you will need to help cover your current fixed monthly expenses to run your firm. Use the Monthly Expense worksheet to help you determine your needs.
Are there any refunds with this Plan?
Cash refunds are paid annually by the AICPA Insurance Trust from premium refunds received from Prudential and can lower your overall costs. Although not guaranteed, participants under the AICPA Life and LTD Plans have received cash refunds every year since each Plans inception.
What are the AICPA cash refunds?
Cash refunds are paid annually by the AICPA Insurance Trust from premium refunds received from Prudential and can lower your overall costs. Although not guaranteed, participants under the AICPA Life and LTD Plans have received cash refunds every year since each Plans inception.
Will I be covered for successive disabilities?
If you receive benefits for a disability, recover, and again become disabled while covered under the Plan, the later disability may be regarded as a continuation of the prior one without an additional waiting (elimination) period. However, the second disability will be considered a new one if you have been back to full-time work for at least three consecutive months, or if the second disability is due to an entirely unrelated cause and the two disabilities have been separated by an interval during which you have performed all the duties of your occupation.
When will my coverage terminate?
Coverage terminates when you attain age 70 unless you are receiving benefits. Benefits are paid in accordance with the terms of the Certificate. Earlier termination will occur if you cease to be a member of the AICPA or any State Society of CPAs, the master policy terminates, you receive benefits to the maximum period of payment or you withdraw from the Plan by so requesting or by failure to make timely payments of the required contributions to the Trust. You may also request to move to a lower monthly benefit amount if your coverage is above $1,000.
How do I qualify for benefits?
In order to qualify for benefits you must be responsible for 20% or more of the firm's expenses, unable to perform the material and substantial duties of your own occupation and be under the regular care of a physician, but confinement to a house or hospital is not required. Click here for additional information.
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