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If a disabling injury or illness temporarily stopped your medical practice and your income, how would your office keep running? If you're a practicing physician responsible for part or all your office overhead expenses, it’s important to have a solution in place.

An Office Overhead Expense Insurance plan can cover employee salaries, rent and other expenses so your medical office can keep going, even if you are unable to.

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 equaling a multiple of the monthly benefit amount.

Want to learn more?

Connect with a Coble Cravens Financial Professional today to learn more.