Business Overhead Expense Insurance

Business Overhead Expense Insurance

An insurance policy that provides coverage in case the owner of a business is disabled and temporarily, but completely, unable to work. For example, if a business owner contracts cancer and is unable to work during treatment, business overhead expense insurance will pay his/her operating expenses during the period of disability so the business can continue to function. Examples of included expenses are property taxes, insurance premiums, interest on debt, employee salaries, and so forth. The expenses must be incurred during the period of disability (for instance, the company cannot close its main office and expect compensation for rent it is not paying). The maximum period during which coverage is paid is usually one or two years. See also: Business income coverage.