Business Overhead Expense Insurance

What Does Business Overhead Expense Insurance Mean?

Business overhead expense insurance is a type of commercial insurance that provides financial support to cover a business’s operating expenses if the owner becomes disabled.

Insuranceopedia Explains Business Overhead Expense Insurance

Business overhead expense insurance is specifically designed to cover the business’s operating costs, not the personal expenses of the owner who becomes disabled. Most policies cover various business expenses, such as employee salaries, rent, and taxes. This type of insurance is particularly beneficial for small businesses, as it helps maintain operations while the owner is unable to work. However, coverage is typically limited in duration, usually lasting only one to two years from the time the insurance is activated. Additionally, most policies apply whether the owner’s disability is partial or total.