Archive for April, 2010

As insurance professionals we have a duty and obligation to ensure our clients are properly protected from risks that can have devastating impacts on themselves, their businesses and their families.  As consumers we are all very sensitive to insuring our, home, auto, health, and life, but all too often we do not consider insuring our ability to earn a living.  Insurance professionals have generally done a very good job at presenting and selling disability insurance either through the employer, the individual market, or the group association market.  While disability insurance helps to replace income when an individual cannot work due to a disability, this benefit is intended to provide a monthly benefit to cover the expenses of managing the household, groceries, mortgage payments, utilities etc. 

What happens if the individual is also a business owner or a partner in a business and they become disabled?  How is payroll met, rent and utlities paid, equipment leases paid?  These expenses do not suddenly disappear in the event of a disability, therefore, they must be paid, or the business could face bankruptcy.  There is a highly effective product called Business Overhead Expense coverage, which is in essence a disability policy to cover the expenses associated with running a business.  Physicians,  attorneys, dentists, CPAs, have traditionally been key professions that have seen the value in Business Overhead Expense.  Unfortunately, our experience indicates that insurance professionals have gotten away from selling this valuable product, and we are challenging the market to take a closer look and consider presenting and selling this valuable product again.

If you have book of individual or association group disability this is a great place to start with a fairly simple cross sell.  You need to explain the need to your customer  in the easiest of terms: you have insured your household in the event of a disability, you now need to ensure your business in the event of a disability.  Disability and Business Overhead are two separate and distinct policies that will cover the same disability and should be explained and treated as such.

Business Overhead Expense coverage is tax deductible in most cases making it even a greater value.

Are you currently offering Business Overhead Expense coverage?  What strategies are working?  We would like to hear from you.

If you are interested in learning more about Business Overhead Expense coverage including marketing and sales strategies, please contact us at Cranbury Professional Services

George Bode

I have not failed. I’ve just found 10,000 ways that won’t work.

Thomas A. Edison

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