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Are Disability Business Overhead Expense Policies Worthless if You Close Your Business?

Most business owners that cease operations due to a disability are stuck with ongoing business related bills that existed prior to the date of disability. The question is whether disability insurance companies pay disability Business Overhead Expenses to an insured that becomes disabled and has either closed their company or sold their business assets?

The answer depends on a lot of factors and the disability insurance company that sold the policy. Business overhead policies (“BOE”) are sold by numerous disability insurance companies as an insurance policy that is suppose to cover the expenses of a business that existed at the time an insured becomes disabled. All BOE policies require the insured to meet several criteria in order to be eligible for benefits. The first criteria is that an insured must be “totally disabled”, which is often defined as unable to perform the duties of your occupation. The second criteria is that the insured must be totally disabled for at least 30-90 days in order to be eligible for benefits. The third criteria and most challenging in most BOE claims is complying with the policies definition of “Covered Overhead Expenses” or Business Overhead Expenses.

Since the early 1990’s, there have been multiple lawsuits in courts nationwide in which the interpretation of the meaning of “Covered/Business Overhead Expenses” has been extensively litigated. Unfortunately, in many cases the insured has been on the losing side, and there is a disturbing body of case law which suggest that Business Overhead Expenses are not payable once an insured either closes or sells their business. But, what about expenses that continue after the sale or closure of a business? The key factor that drives the outcome of each of these cases is the actual definition of “Covered/Business Overhead Expense” within the business overhead policy that you purchased. In most of the cases in which the court agreed with an insurance company’s denial of business overhead expenses, the definition of Covered Overhead Expenses applied only to those expenses incurred in either the ongoing or continued conduct of a business. The ambiguous keyword here is “ongoing” or “continuing”.

Let’s assume you are the only doctor or dentist in a professional practice and you are unable to perform the duties of your occupation. How will the practice financially continue without you generating revenue? In the short term, you could hire another professional to come in and perform your duties, which the BOE policy may cover these expenses for a limited period. However, the reality is that there is often no one available to treat all of your patients and still generate enough revenue to keep your practice profitable. So what usually happens is that a doctor or dentist is forced to either close the practice or look to sell the practice. In most situations the practice is closed down and the doctor still has expenses such an office lease, equipment lease or loan, bank loan used to finance the practice and employee expenses to help wind down the practice.

The $250,000 question at this point is whether the BOE policy continues to cover the remaining pre-disability business expenses once a doctor or dentist is no longer treating any patients? Can a doctor or dentist argue that the practice is ongoing because there are still receivables that need to be collected, patient files that must be maintained and most importantly financial debts of the practice that still must be paid? It seems like BOE coverage is worthless if an insured must be unable to work in their occupation, but then is not eligible for coverage if they cannot manage to keep the doors of their business open.

As scary as this situation may seem, we have been able to help hundreds of medical professionals and business owners to collect under their BOE disability policies. It takes careful planning and analysis of your BOE policy in order to maximize the available benefits. Contact any of our disability insurance attorneys for a free consultation to discuss your claim.

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Reviewed by Carina S. on November 12th 2024 Verified Policyholder

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They FULL OF ****

Reviewed by KM on October 3rd 2024 Verified Policyholder | August 2024 date of disability

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Worst Company Ever

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Reviewed by Jeff on August 22nd 2024 Verified Policyholder | August 2024 date of disability

The worst company I ever dealt with, never received a call from my claim manager.

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Short Term Disability Claim/Inconsistent to NO Communication

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Reviews from Our Clients

S.S.

I am a physician in my 30s who was practicing in my hospital based medical specialty until my Multiple Sclerosis diagnosis began to severely limit my physical ability to work.

My husband and I were obviously in distress at these very unwanted life changes and frankly overwhelmed with the possibility of a long and traumatizing legal battle ahead of us. We knew we were legally entitled to benefits through the separate private individual and employer based ERISA disability insurance policies we had, but even cursory research and discussion with colleagues made it clear that insurance companies will strategize with their own legal teams to find ways to not pay out benefits. We found many before us who had fallen unwittingly into legal pitfalls that prevented them from ultimately obtaining benefits. We realized we needed to seek legal counseling.

We found Dell Disability Lawyers through their YouTube channel where their partners have videos discussing the legal intricacies and latest developments in private disability law. I was impressed by their dedication to the field and reached out through their website to request a free consultation.

We were delighted to hear that Mr. Steven Dell himself would be willing to take our case and felt assured that we would be represented by the best of the best.

We have not been disappointed in our expectation and have, in fact, been consistently very impressed. Steven Dell is clearly both knowledgeable and wise about dealing with these issues but more importantly, has shown kindness and impeccable honesty at each step of the way.

Merlin has demonstrated a very high capacity for organizing and handling the endless myriad of documents and communications between us and the insurance companies. She has also been very compassionate, accessible and forthcoming in dealing with our many anxiety fueled emails and telephone calls to her and we are very grateful for her involvement.

For over 7 months, we have been working closely with Steven Dell and Merlin Bryan from Dell Disability Lawyers as they have guided us through the process of review and initial application for benefits from our two insurance policies (Hartford and Ameritas).

We are happy to announce we just received approval of claim from the Hartford insurance company.

At this time we are still working with this firm as we await the final decisions from Ameritas policy that we are hopeful will have a similar outcome.

As anyone with a chronic and progressive illness can tell you, time becomes a very precious commodity. Through their representation, Dell Disability Lawyers has allowed us to focus the majority of our time enjoying the time and function I have left while resting assured that our disability case laid in competent and caring hands.

The truth is that no amount of money can make up for what we have lost, but it is a huge comfort to have a team like Dell Disability Lawyers at our sides to help us ensure we will be able to continue to care for ourselves and our families.

We highly recommend Dell Disability Lawyers, Mr. Steven Dell and Ms. Merlin Bryan to handle your disability insurance claim.

Thank you Steven, thank you Merlin!

We will certainly plan on leaving another review for completeness once we have our final decision from Ameritas.

Paula B.

I have been working with Dell Disability Lawyers for the past 5 years concerning my disability as it pertained to my employer. I have been more than pleased with them the entire time. They have always kept me informed of any paperwork needing completed or any changes coming ahead. Nothing has been a surprise. I would recommend them to you to help with your disability case if you’re trying to dip into the policy you’ve been paying for.

Michael M.

I am a physician who has been disabled for over 10 years. During this time I have been represented by Cesar Gavidia and his assistant, Danielle Lauria. Their representation on my behalf has allowed me to concentrate on dealing with my disability/disease process and all associated complications and not having to deal with all the things that are necessary in a disability insurance claim. Based on my personal experience from many years of practicing medicine I would consider their work product, insight and effort in the disability insurance claim procedures to be superior. I would recommnend them, which I have done, with my highest level of confidence. In short, you will be well served with this practice.

Dan P.

I had to retire from my career due to a bad back that restricted me from performing my duties. I had LTD insurance and after a few years of receiving monthly benefits from this insurance company, they notified me that my benefits were terminated stating that I don’t qualify due to my duties not fitting into some “national job description” and a nurse had deemed me eligible to go back to work. It’s a crushing feeling to have this told to you over the phone with hardly any information given. Luckily, I came across Dell Disability Lawyers and spoke with Attorney Palamara who calmed me down and stated they would take my case. Within a couple of months my benefits were restored, and I had piece of mind. I cannot thank Attorney Palamara and the staff at Dell Disability Lawyers enough for their professionalism, no nonsense approach, personal and timely communication and quick ability to litigate my case.

Jen S.

I wanted to thank Mr. Symonds and his legal assistant Sonia for their professionalism, guidance and dedication towards my LTD insurance claim. Going through the denial process on my own was going to get me sicker and I knew it was time for help right away. I reached out to Dell Disability Lawyers for assistance and not too long after my call, I was connected with Sonia. Soon after that, I was talking about my case with Mr. Symonds. After a long and tedious process with the LTD insurer, we won the case. The wait can absolutely be lengthy, but in the end, it was all very much worth the fight. Thank you both so much for all that you have done for me! I also want to thank those who assisted in keeping me updated, as needed. Highly recommended for anyone who is going through the brutal process of an LTD denial.

Carl G.

I would like to thank Dell Disability Lawyers for taking care of my case and help me get the insurance coverage that I was rightfully in need of. Specially, I would like to thank Attorney Alexander Palamara and right-hand legal assistant, Sonia Nogueira, who made this process less stressful. They answered all my questions and kept me informed every step of the way.

Don’t get me wrong. They never promised or told me that I was going to win my case, as no one can guarantee that for you. What they did do, was letting me know that they were working hard for me and to keep positive. Something that I recommend everyone to do is to subscribe to their YouTube channel. That will give you an idea on how they operate and why they (for most of their cases) win their cases.

Since I was awarded disability, I am still having surgeries and thanks to them, I’ve been able to cover all those expenses.

Warm regards to everyone at Dell Disability Lawyers!

Clarisa B.

I’m so very Grateful and Thankful for the team at Dell Disability Lawyers. They worked tirelessly to get the best outcome for me. I’m so glad that I found them!!

Carole S.

Exceptional, efficient and professional service from Jay Symonds and Sonia Nogueira. They were both so helpful and knowledgeable and navigated me through a very stressful and difficult situation with New York Life.

K. S.

Awesome team. Jay and his team, Sonia and Francesca, truly care. This team is very professional and quick to respond. Jay always provided answers in detail to my questions. I strongly recommend Jay Symonds.

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