Business overhead expense (BOE) disability insurance pays a dentist’s business overhead expenses if he or she becomes disabled. A BOE policy pays a monthly benefit based on actual expenses, not anticipated profits. In relation to dentistry these policies are designed for practices that rely on a small number of staff to produce revenue.

Coverage

The following business overhead expenses are typically covered by a BOE disability policy:

• Rent
• Interest payments on some business debts
• Utilities
• Employees' salaries and payroll taxes
• Postage and stationery
• Equipment maintenance
• Rental, lease, or depreciation of office equipment
• Taxes on the business property location
• Insurance premiums for Workers' Compensation, employee medical, and liability
• Accounting fees
• Professional memberships and subscriptions

Policies do not typically cover the salary of a temporary dentist hired to do the duties of the disabled practitioner, unless a substitute salary expense or similar rider is purchased with the policy. Income taxes and the cost of inventory are some expenses that are not covered.