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.
References in periodicals archive ?
Keep in mind that business overhead expense insurance doesn't replace the personal disability insurance you need to have--it supplements your personal coverage.
If there is no one else available to run the business (as in the case of a sole proprietor) the client might also want to consider business overhead expense insurance.
Business owners can learn about succession planning and business overhead expense insurance in one area, and how to plan for retirement in another," said Politis.
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