Office Overhead Expense Insurance

The AMA-sponsored Group Office Overhead Expense Insurance helps pay your practice’s covered overhead expenses should a covered total disability prevent you from working.
Covered overhead expenses:

• Office rent or mortgage interest payments
• Utility bills, including electric, heat , water, gas and telephone; plus laundry and janitorial services
• Employees’ salaries
• Salary of a temporary replacement physician
• Up to $3,000 for recruiting a temporary replacement physician
• Accountant’s fees
• Lease payments on existing business debt for equipment and/or furniture loans
• Other fixed overhead expenses that are normal and customary in operating your business
• The monthly average of taxes on the business premises you own and use in your profession
• Insurance premiums for tax deductible business insurance, including professional liability, malpractice and property and casualty insurance; Workers Compensation; and employee group benefits

Expenses not covered include: any remuneration to you (fees, your salary, drawing accounts) or to any other employed physician or partner; the cost of items for which you are not regularly liable; income taxes; payment on the principal of any debt; the cost and depreciation of any office equipment, furniture, fixtures, goods, instruments, merchandise (except those that are essential to the continuing operation of the business or practice during a period of disability; or pharmaceutical products pertaining to your profession or occupation); or automobile lease payments.

Up to a $20,000 per month benefit is available. You can also combine other office overhead coverage with this insurance for a total combined benefit of up to $30,000 per month.

You can also choose the waiting period (30, 60, or 90 days) and benefit period (6, 12, 24 or 36 months) that best fit your unique needs. The waiting period for an organ donation is 0 days. The waiting period is defined as the period of time from the start of total disability during which no benefits are payable. The waiting period is only satisfied if you are not working in any occupation.

You may receive benefits for your actual covered expenses incurred, up to the maximum monthly benefit amount approved for the benefit you choose, once you have satisfied your waiting period. If you are disabled prior to age 65, benefits will continue until the end of the benefit period selected. For total disability that begins on or after age 65, benefits are payable for a maximum of 12 months, but not beyond age 75 (Note: For organ donation, the waiting period is waived and the maximum benefit period is 12 months.)

You are considered to be totally disabled when you cannot perform the substantial and material duties of your regular occupation due to a covered injury, sickness or organ donation, are not engaged in any gainful occupation and are under the care or supervision of a licensed physician, other than yourself. To be covered, the sickness must begin or the injury occur while your coverage is in force.

If you should die while insured under this coverage and you are receiving benefits, a business estate will continue to receive the monthly benefit until the earliest of: the estate receives a  benefit equal to the covered expenses of closing your office (up to a maximum of four times your monthly benefit), the maximum benefit period is reached or the date your business is sold. These benefits will be payable to your estate or duly appointed guardian or committee unless you are incorporated or a member of a professional corporation, in which case benefits would be payable to the corporation.

This coverage has been designed to conform with Internal Revenue Service ruling (550264, I.R.B. 1955-19, p. 8) allowing premiums to be deducted as a business expense. Consult your personal tax advisor for details.

After you receive monthly benefits for six continuous months (180 days) due to total disability, all premiums paid from the date of total disability will be refunded and future premiums will be waived until you stop receiving monthly benefits.