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FAQ - Isurance Disputes: Business Overhead



A: Business overhead insurance usually covers expenses,including wages and salaries, utilities, taxes, rent, accounting andlegal fees, interest, office supplies, principal and interest onmortgages, malpractice and other insurance, and other operatingexpenses, up to the amount insured in the applicable policy. Theowner's income is usually not covered.

A: Depending on the size, income and type of your business, you may obtain insurance for one or more of the following categories:
  • Business Overhead Expense Coverage - insurer will reimburse owner for daily operating expenses in the event the owner becomes disabled
  • Business Buy-Out Coverage - insurer will cover expenses related to a forced buy-out of the business in the event of a disability or death of a business partner
  • Business Key Person Coverage - insurer covers income lost and rehiring costs when a key employee becomes disabled
  • Group Health Insurance - group health plans provide reimbursement for some or all medical costs to employees

A: Using personal or business assets to keep your business afloat may onlyprovide a temporary fix, and will continue to drain your financialnest. Also, a disability can be difficult to recover from, and it isoften hard to gauge when and if you will be able to work again. Abusiness has a much greater chance of success when the insurancecompany agrees to pay your business overhead expense claim.

A: It is important to review your policy very carefully to make sure your claim is legal, and to read appeal protocol. An experienced business overhead insurance lawyer can help you interpret your policy and confront the insurer on unfair insurance practices.

Depending on your situation and the exact wording of your policy, you may be able to file a lawsuit based on breach of contract, breach of the implied covenant of good faith and fair dealing (bad faith) and under some circumstances infliction of emotional distress and fraud.


A: Once your claim is denied it is important to get a lawyer experiencedin these types of claim to review your situation as soon as possible.

A: Share Lawyers does not require a down payment or retainer from its business overhead insurance clients. Our disability lawyers operate on a contingency fee basis, where all costs are covered up front by our firm, and the lawyer collects his or her fee only in the event of a recovery.

A: There are time limits to all insurance disputes and any delay inproceeding may be subject to a deadline. You should not delay inproceeding with your claim or obtaining legal advice to clarify thesedeadlines.