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Disability Business Overhead Insurance


How it Works

Business overhead disability insurance provides a monthly benefit to pay for reoccurring monthly expenses to keep the business or practice afloat. This type of insurance is ideal for small business owners and professionals that have reoccurring monthly expenses in running their business or practice.

If the business owner or professional is disabled their income declines or stops, however their expenses will continue. Business owners and professionals would still be liable to pay for expenses and long term commitments, such as bank loans, monthly rent or lease payments for business premises, payments on leases or loans on equipment and vehicles. Business owners and professionals that have employees would also have to meet their payroll.

The overhead expense plan is a non-cancellable and guaranteed renewable business disability insurance policy. The benefits are payable monthly for certain specified business expenses during total disability, partial disability or residual disability during the benefit period. Once the policy is in force the premiums are level to age 65.

The overhead expense plan is best suited for business owners and professionals that have fixed expenses that would not be covered by the revenue generated by their business or practice if they become disabled.

The disabled business owner or professional can recover from their disability, without business overhead insurance their business or professional practice may not. If they are unable to pay for their monthly reoccurring expenses there will be no business or practice to return to and the goodwill built up over the years is lost. Business overhead insurance provides the lifeline to keep the business or professional practice afloat and the goodwill intact. 

Insurable Overhead Fixed Expenses Include: 

    1. Rent;

    2. Scheduled mortgage payment or mortgage interest plus scheduled depreciation;

    3. Electricity, telephone, postage, heat, water, gas, laundry;

    4. Property Taxes;

    5. Employee's salaries (excluding your salary, salaries of other people in your profession and salaries of relatives, if hired after the start of disability);

    6. Accounting services, union dues, professional dues;

    7. Leasing costs

What is Not Covered 

Variable costs are not included, they are not part of overhead expenses. Variable costs are direct expenses associated with providing a product or service. Variable costs include but not limited to materials, tools, supplies etc...


Disability insurance is a highly specialized field that requires guidance and advice of a knowledgeable insurance broker.

There are only a few companies offering individual disability insurance in Canada. Shopping for disability insurance will not result in savings due to lack of competition.

Disability insurance is a complex product, let Stone-Hedge Financial Group Inc. customize a disability insurance policy to suit your needs and budget.


Contact us for a Disability Business Overhead Insurance Quote.


The information provided on this web site is intended for general information only. It should not be construed as legal, accounting, tax or specific insurance and investment advice. Clients should consult a professional advisor concerning their situations and any specific insurance and investment matters. While reasonable steps have been taken to ensure that this information was accurate as of the date hereof, Stone-Hedge Financial Group Inc. and its affiliates make no representation or warranty as to the accuracy of this information and assume no responsibility for reliance upon it.

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