Overhead Insurance

Definition - What does Overhead Insurance mean?

Overhead insurance (or overhead expense insurance) is a type of insurance that business owners purchase to cover various business costs in the event that they become disabled. It can help pay for expense like salaries, rent, and utilities.

Insuranceopedia explains Overhead Insurance

Owners are often extremely critical to the success of their businesses. This means that if a business owner becomes disabled and will be unable to work for a period of time as a result, the business can suffer losses and reduced profitability. Overhead insurance attempts to prevent those losses from being too severe by helping to ensure that there will be enough operating capital to run the business in the owner's absence.

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