Business Overhead Expense Insurance

Updated: 09 June 2023

What Does Business Overhead Expense Insurance Mean?

Business overhead expense insurance is a type of commercial insurance that provides financing for the expenditures of the insured business if its owner become disabled.

Insuranceopedia Explains Business Overhead Expense Insurance

Business overhead expense insurance exclusively pays for the expenses of the business, not those of the individual who has become disabled. Most policies pay for a number of different business aspects, such as the salaries of the employees, rent, and taxes. Designed to benefit companies that only have a small number of employees, it helps the company continue operations and services, even while the owner is unable to work. However, it typically has a short life span. From the moment the insurance kicks in, it is usually only available for the next one or two years. Lastly, most policies are applicable, whether the disability of the owner is partial or total.


Overhead Expense Disability Income Policy

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