Part of our guide: Disability Income Insurance: Solutions, Tools and Guides →
Nearly 70% of business owners aren’t covered by the same Workers’ Comp policy protecting their employees — meaning an injury that sidelines them personally leaves a gap no one’s watching.
Key takeaways
- Workers’ Comp almost always covers employees, but frequently excludes the business owner themselves.
- Business Overhead Expense Insurance keeps fixed costs covered so the business can stay open while an owner recovers from injury or illness.
- Federal employees, independent contractors, farm owners, and several other occupations share this same coverage gap.
Nearly 70% of business owners are not covered under the same Workers’ Comp policy protecting their own employees.
The gap most business owners don’t realize they have
Medical insurance doesn’t cover lost income, and pulling revenue out of the corporation to cover a personal income gap is financially risky. Business Overhead Expense Insurance reimburses the business’s fixed expenses — keeping the doors open while the owner recovers from an injury or illness, both on and off the job.
Who else falls into this same gap
Business owners aren’t alone. Federal employees, independent contractors, private home domestic workers, farm owners and laborers, maritime workers, and railroad employees are just some of the other occupations also commonly excluded from standard coverage.
How to open the conversation
Every business owner who carries Workers’ Comp for their employees is a conversation starter — ask if they have a plan in place for themselves. If they say they’re already covered, compare the cost and the coverage. And remind them that even a thriving company may not survive long without its owner overseeing operations.
Frequently asked questions
If a business owner already has Workers’ Comp, are they covered personally?
Not necessarily — many business owners are excluded from their own company’s Workers’ Comp policy, even though their employees are covered.
What does Business Overhead Expense Insurance actually pay for?
It reimburses the business’s fixed expenses — rent, utilities, payroll for other staff — so operations can continue while the owner is recovering from an injury or illness.
Reviewed by Tim Fuller on 2026-09-25
Tim Fuller
President, SRS Inc.
Tim leads SRS Inc., a full-service IMO (Independent Marketing Organization) and BGA (Brokerage General Agency), connecting independent financial professionals with life, annuity, disability income, and long-term care solutions from 60+ carrier partners.
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