Overhead Insurance

What Does Overhead Insurance Mean?

Overhead insurance (or overhead expense insurance) is a type of coverage that business owners purchase to help cover various business costs if they become disabled. It can assist in paying for expenses such as salaries, rent, utilities, and other essential operating costs during the period of disability.

Insuranceopedia Explains Overhead Insurance

Business owners are often crucial to the success of their businesses. If an owner becomes disabled and is unable to work for an extended period, the business may face losses and reduced profitability. Overhead insurance helps mitigate these potential losses by providing the necessary operating capital to keep the business running in the owner’s absence, ensuring essential expenses are covered during the period of disability.