We regularly represent individuals that have Business Overhead Expense disability policies, which are usually referred to as “BOE” policies. The challenging issues with collecting on a BOE is when a business is sold or shut down, the policy language may prohibit eligibility for benefits. All too often we receive calls from potential clients that have sold their business and now want to collect under their business overhead expense disability policy.
Throughout the years we have developed some unique and creative strategies that have allowed our clients to maximize the benefits of their BOE policy. Any business owner that is selling their business as a result of a long term disability should always consider how the BOE benefits will factor into the sale price of the business. For example, if the claimant has a building lease obligation of $5,000 a month for the next 12 months, the BOE may pay this lease so long as the claimant and the business remain liable for the lease payments. If the claimant owns the building that has the lease, then this could potentially be an additional $60,000 of disability income for the claimant.