What does Business Overhead Expense insurance primarily cover?

Business Overhead Expense insurance is specifically designed to cover the ongoing expenses of a business when the owner becomes disabled and is unable to work. This type of insurance focuses on ensuring that the fixed costs of operating the business can still be met during the period of the owner’s disability. These costs typically include rent, utilities, salaries of employees (not including the owner's salary), and other necessary business expenses that continue regardless of whether the owner is actively working.

The coverage is crucial for business continuity, allowing the business to maintain its operations and avoid financial strain while the owner is recovering. This type of insurance ensures that essential bills are paid, which can help keep the business stable until the owner can return to work.

While other options may relate to aspects of business operations, they do not capture the primary intent of Business Overhead Expense insurance, which is to specifically address the ongoing overhead expenses in the face of the owner's disability.