What does Business Overhead Expense Insurance pay for?

Business Overhead Expense Insurance is designed specifically to cover the ongoing operational costs of a business when the owner becomes disabled and unable to work. This type of insurance helps mitigate the financial impact of lost income and ensures that essential expenses are paid, allowing the business to survive during the owner's absence.

The coverage typically includes expenses such as rent, utilities, and other necessary overhead costs that keep the business operational, rather than personal expenses or direct employee salaries. This distinction makes it a crucial financial tool for business owners who want to maintain the stability of their enterprise even when faced with a disability.

The other options refer to expenses that are not the primary focus of Business Overhead Expense Insurance. For instance, personal expenses during disability focus on the owner's personal financial needs, while employee salaries are typically covered under different types of insurance or worker's compensation plans. Equipment replacement costs fall outside the scope of this insurance as well, focusing instead on the operational expenses related to keeping the business running.