What is Business Overhead Expense (BOE) insurance?

Business Overhead Expense (BOE) insurance is a type of disability insurance that reimburses your eligible fixed business expenses — such as office rent, employee salaries, equipment loans, and utility bills — if a disability prevents you from working. Unlike personal disability insurance, BOE covers the costs your business owes regardless of whether you are generating revenue.

Who needs BOE insurance in Alberta?

BOE insurance is most important for self-employed professionals, incorporated business owners, and small business operators in Alberta who have significant fixed monthly overhead — especially if their business cannot generate income without them present. This includes physicians, dentists, lawyers, accountants, consultants, contractors, and other owner-operated businesses.

What expenses does BOE insurance cover?

BOE insurance typically covers: office or clinic rent and lease payments, employee wages and salaries (excluding your own income), equipment loan and lease payments, utilities, business insurance premiums, property taxes, accounting and professional fees, and other fixed monthly costs that continue whether or not you are working. Coverage varies by policy and insurer.

How is BOE insurance different from personal disability insurance?

Personal disability insurance replaces a portion of your personal income if you cannot work. BOE insurance specifically covers your business's fixed operating expenses. The two policies are complementary: personal disability keeps your household running; BOE keeps your business running. Most incorporated professionals and self-employed owners need both.

How much does BOE insurance cost in Alberta?

BOE insurance premiums in Alberta depend on your occupation, age, health history, monthly benefit amount, and the benefit period you choose (typically 12 to 24 months). Premiums are generally tax-deductible as a business expense when paid by a corporation or self-employed individual. A free audit with Frank Cover will show you actual premium estimates based on your specific overhead.

How long does BOE insurance pay benefits?

Most BOE policies offer benefit periods of 12 or 24 months. This is intentionally shorter than personal disability policies because it is designed to cover the recovery period — giving you time to either return to work, hire a replacement, wind down the business, or transition ownership, without the overhead destroying the business's value.

Are BOE insurance premiums tax-deductible in Canada?

When a corporation pays BOE insurance premiums, they are generally deductible as a business expense. However, any benefits received are then taxable income to the corporation. When a self-employed individual pays personally, the premiums are not deductible but the benefits are received tax-free. The optimal structure depends on your business type — speak with your accountant and a licensed advisor.

Can I get BOE insurance if I am incorporated in Alberta?

Yes. Incorporated professionals in Alberta — including physicians, dentists, lawyers, engineers, and other incorporated business owners — are eligible for BOE insurance. The policy is typically owned by the corporation and covers the corporation's fixed overhead. Frank Cover specializes in advising incorporated professionals on BOE and related business insurance strategies.

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Your disability insurance replaces your income — but who pays your rent, your staff, and your business loans?

Incorporated Professionals
Self-Employed Business Owners
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Business Expenses

Office Lease

$4,500

Staff Payroll

$7,200

Equipment Loan

$2,800

Monthly Exposure

$14,500

Still due during disability

Why most disability plans leave a major gap

Your income is covered

Most disability insurance protects your personal income if you cannot work.

But your overhead is not

Rent, payroll, and loan payments continue whether you are working or not.

BOE insurance fills the gap

Business Overhead Expense insurance keeps your company operating during a disability recovery.

See your monthly exposure in 30 seconds

Estimate how much your business still owes each month if you are unable to work.

Office Rent / Lease

Staff Salaries

Loan & Equipment Payments

Your business owes

$14,500/month

even if you are not there.

Most BOE policies can cover eligible expenses while you are recovering from a disability.

Frequently asked questions about BOE insurance

Common questions from Alberta business owners and incorporated professionals.

Get your free Business Protection Audit

In 15 minutes, we will map out exactly what is at risk and what it would cost to protect it. No obligation. No sales pressure.

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