Business Overhead Expense Insurance – Does It Make Sense?

A Business Overhead Expense Insurance Plan (BOE) is more of a “poor man’s” disability plan. It’s a disability plan only covering a select few key employees (usually the business owner, practicing doctor, managing partner, or someone of extreme value to the company) and their ability to work.

As you might guess, a business that relies on a small number of key employees (or even just one) to make their business work, service clients, and/or drive sales is extremely vulnerable (financially) if one of those employees gets hurt or sick and cannot perform their work duties. A Business Overhead Expense Insurance policy will cover the ongoing operating expenses of your practice or business but be based on the disability coverage for a key employee. It ensures that the business owner does not have to use personal assets to pay for fixed business expenses if one of the key employees becomes disabled and cannot perform their work duties.

If the insured key employee does become disabled, a BOE policy pays a monthly benefit based on business overhead expenses, not anticipated profits. Part of the underwriting process involves verification of the company financial statements and employee census (plus the employee must be underwritten and insurable).

The following are some of the business overhead expenses that are covered within a BOE policy. As you’ll notice, these are fixed, predictable expenses that are easily shown and verified. Some of the covered expenses include:

Rent or Mortgage Payments

Employee Salaries and Benefits

Utility Bills

Property Taxes

Accounting Fees, Legal Fees, and Professional Dues

Malpractice and Other Business Insurance Premiums

Maintenance and Janitorial Services


Interest on Business Debts

Office Supplies

Other Fixed Expenses that are Ordinary, Necessary, and Tax Deductible

As you’ll notice, variable expenses, such as sales expenses, meals and entertainment, and marketing costs, are not covered under this type of plan. The Insurance Companies believe, and rightfully so, that these type of costs can fluctuate dramatically and are neither predictable nor fixed.

However, a Business Overhead Expense Insurance plan is an effective way to protect a business and maintain cash flow in the event of a disability to one of the partners, key employees, or owners. Essentially, as I mentioned previously, it’s a “poor man’s” disability plan and a great tool to protect a young and growing business. Since “Cash is King” to a small business owner this type of policy might be what keeps the company afloat in the event of a tragedy.

The Tweet Smell of Success: Promoting Your Business on Twitter

OK, I can see where it might have social applications – we all have to know everything everyone is doing these days, right? – but is Twitter useful for business? I think the answer is, yes – if you know what you’re doing.

Basically, Twitter is micro-blogging, so the same guidelines for establishing a successful blog also follow for Twitter:

Build your brand- your online brand should be the same everywhere, so be sure your Twitter profile matches your other online profiles. If you are tweeting for business, create a business account – Twitter has good tips on how to do this in their Business section.

Market yourself- add a Twitter button on your website, include your Twitter handle in your email signature, add it to your other online accounts, even put it on your business card. The point of Twitter is to gather as many followers as possible.

Create and/or join a group- Twitter has both private and public groups, which are great for networking and establishing yourself as a reliable resource for information or products and services you’re selling. To start or join a group, go to TweetWorks or Tweetdeck two of the most popular group services.

Listen and Learn- use Twitter search to see if anyone is talking about you and what they’re saying; it’s a great platform for ensuring your customer service is up to snuff, and fixing any problems you may not even be aware of. It’s also a great way to learn more about – and from – your competitors.

Interact- social media is all about community and you aren’t a valuable member of any community if you don’t give something back. Comment on and “retweet” other posts you like and share news items or useful information you come across, even if it has nothing to do with your business.

So, while many of us have been tweeting and friending our way to a more robust social life, the savvy small business entrepreneur has also learned that harnessing the power of social networking for business purposes can have a profound effect on profitability.

Here’s why:

Connection Sells- Social networks provide the platform for businesses to create an environment of engagement, which eventually leads to commerce. Today, it’s all about making a connection with potential customers based on the personality of your brand, allowing customers to get to know you in authentic ways that make them want to do business with you.

Authenticity Sells- defining your personal brand and giving it an authentic voice through your postings and interactions on Twitter, Facebook, YouTube, etc., creates a meaningful bond with customers. Quick responses to fixing customers’ problems and acts of goodwill can do more to promote your brand positively on social networks than a more traditional – can costly – advertising campaign.

Availability Sells- having an interactive profile for your brand on all the major social networking sites allows customers to find you where they hang out. Your accessibility translates into more potential sales opportunities.

As we enter the second decade of the 21st century, technology and social media will continue to play an increasingly important role in how we build more direct connections with customers and prospects.

The traditional “ABC” sales mantra – Always Be Closing – has evolved to Always Be Connecting. Social media is a powerful connecting force for any business, from local to global, and can significantly boost your bottom line if handled properly.

Check out A Web Business for more insightful information on starting and promoting your business online.

A Day in a Business Manager’s Life

Part of the business management job description says managers may handle a variety of various positions within an enterprise. The general responsibilities they perform include directing, planning, organizing, implementing policies, and coordinating of operations of the company. Business managers may be responsible for analyzing and planning how to capitalize their resources and work force to also perform their full capacity. This means that a manager is not just a leader of the management team, but also a discoverer of finding the most advantageous assets for their own good. So, if you wish to become a business manager, you must learn how to be able to understand the importance of innovation, service excellence, and goals.

Business managers can work in various settings, besides every business entity needs a manager to handle its daily operations. That is why you given with a huge selection of options to specialize in a specific area of business operation like in finance, health care, education, among many others. Also part of the business management job description is the responsibility to be accountable for the accuracy of financial reporting for the business.

Business Management Job Description

As a manager, the company will depend a lot on your skills and expertise to help them reach their goals and objectives. These goals are usually associated with productivity, sales, profitability, competence, services, among many areas. While there are several business managers who supervise a single department, others may direct and manage the overall operations. This will most likely happen in privately owned companies, publicly held corporations, non-profit organizations, and other industries. The usual responsibilities include planning operations, analyzing data, managing the staff, and making crucial decisions. Once a company is able to achieve success, you are most likely credited to that achievement by which you can earn good reputation.

Included in the management job description are the day-to-day duties of managers in smaller firms. These tasks include purchasing, hiring, quality control, and training. And in larger companies, they often require their business managers to come up with policies to implement in the department, plan for resource needs, and manage the overall marketing strategies.

Management job description: Working environment

In terms of the working environment, part of the management job description says that most managers work in their own offices. They generally have support staff and clerks who specialize in performing administrative tasks and responsibilities. Some are employed in industries that require their managers to regularly visit various local, regional, or international offices. Some of them are also being sent to national and international conferences or meetings to find potential clients. So, in becoming a business manager, it is wise to know in which industry you would like to work in and the nature of the job. Most managers spend at least 40 hours in their offices or on duty weekly. Extended hours may also be required by the management to meet business demands for the day, but you will get paid with higher salary.

In general, having natural leadership skills can make your life easier as a manager. You will get easily familiar with handling business issues, duties, and human resource if you will meet the standards. Part of the business management job description is to possess qualities and skills like critical thinking, hard work, dedication, multitasking, wise decision-makings, able to take risks, etc.