How Much Business Expense Insurance Do Business Owners Need?
You don’t want to pay for more coverage that you need, but you don’t want to end up with an insufficient benefit amount, either. When deciding on a benefit amount, it’s important to calculate the business’s overhead expenses.
Look at what expenses the policy covers. Then, add up your average monthly costs for each type of expense. The total is how much you’ll need the monthly benefit to cover.
Over time, your business expenses may change. For example, if you move into a bigger office or hire on additional workers, your monthly costs may increase. For this reason, you should reassess your coverage occasionally.
Are Business Expense Overhead Insurance Premiums Tax Deductible?
As many small businesses operate on thin profit margins, business owners may be worried about the cost of buying an additional insurance policy. The good news is business expense overhead insurance premiums are typically tax deductible. Since this tax deduction can help make coverage more affordable, it’s important to be aware of it.
