Sponsored by The American Bar Endowment

September 25, 2018 Practice Management

SPONSORED CONTENT ● Law and Life: Professional Overhead Expense Insurance Is a Smart Business Decision

By the American Bar Endowment

It’s a bold move to strike out on your own and start a practice. Being independent brings many rewards, not the least of which is a great sense of accomplishment. But it also brings greater responsibilities, too. In addition to any immediate family members who may depend on you, you also have a responsibility to your employees and the business itself.

Family Comes First

If you’re a primary breadwinner, your ability to generate income is the engine that supports your lifestyle and enables you to maintain the standard of living you’ve worked so hard to achieve. If an accident or illness suddenly prevented you from working—even for a short period—it would very likely have a drastic effect on you and your family’s livelihood. It could also mean the end of your business.

As a solo practitioner, it’s imperative that you, your family, and your business are properly protected against unfortunate unexpected events. That’s where the American Bar Endowment (ABE) can help. ABE offers a wide range of group insurance plans underwritten by New York Life.1 Your first priority should be to your family, and that’s easily taken care of with ABE-sponsored Group Disability Insurance coverage. It’s an affordable way to safeguard your income for as long as you need, up to age 65.

Learn more here about ABE-sponsored Disability Insurance Plans.2

Could Your Business Survive Your Temporary Absence?

If you were ever hospitalized or unable to work due to an accident or illness, it would be a serious challenge. But imagine how much worse you’d feel if a short-term health issue delivered a fatal blow to your practice. Professional Overhead Expense Disability Insurance, or POE for short, could mean the difference in whether your practice collapses or survives such a setback.

ABE-sponsored POE plans are available to ABA lawyer members under age 65 who operate practices with up to five attorneys. You can tailor your coverage to suit your exact needs to pay up to 100 percent of your normal and regular office expenses, up to $10,000 a month, for a maximum benefit period of 12 months.

Our POE plans can help ensure your practice continues to run by paying a wide range of covered business expenses, including:

  • Office rent and utilities, such as heat, water, telephone, electricity, etc.
  • Non-attorney employees’ salaries and payroll taxes.
  • Property taxes and interest payments on outstanding eligible business debts.
  • Maintenance, rental, lease, or depreciation of office equipment.
  • Interest payments on outstanding eligible business debts.
  • Insurance premiums for workers’ compensation, employee medical plans, employee taxes, general liability, and professional liability/malpractice.

Benefit from Your Own Wise Counsel

Being a solo practitioner, your clients rely on you to provide wisdom, expertise, and prudent advice. When you apply these same skills to your own circumstances, you can conclude that protecting the future of your practice with a POE Disability Insurance plan through ABE is a prudent business decision.

Learn more here about ABE-sponsored POE Disability Insurance Plans.3

Get Protection, Give Back

As an independent, not-for-profit public charity, the ABE fulfills a dual mission: first to help lawyers across the country obtain insurance products underwritten by New York Life, and second to enable them to seamlessly gift the annual dividends4 to the ABE as a tax-deductible donation. In turn, these funds support the ABA Fund for Justice and Education, the American Bar Foundation, Opportunity Grant recipients, and other worthy projects and programs. Thanks to the generosity of members, ABE has awarded more than $291 million in grants to date.

For details5 or to apply online, visit abendowment.org or call 800/621-8981 to speak with an ABE insurance plan specialist.


1. Underwritten by New York Life Insurance Company, New York, New York. Policy form GMR.

2. Including features, costs, eligibility, renewability, exclusions, and limitations.

3. Id.

4. Dividends are not guaranteed.

5. Id. at note 2.

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The American Bar Endowment (ABE) is a sponsor of the ABA Solo, Small Firm and General Practice Division. Neither the ABA nor ABA entities endorse non-ABA products or services. This column should not be construed as an endorsement.


ABE, a 501(c)(3) public charity, supports good works of importance to the public and the legal profession through grants made possible by sponsoring insurance plans for attorneys. For more, go to abendowment.org.