What does a Business Overhead Expense Policy cover?

A Business Overhead Expense Policy is specifically designed to help business owners cover essential operating costs during a period of disability that prevents them from working. It provides financial support for ongoing expenses that a business incurs even when the owner is unable to manage it due to illness or injury.

The correct choice highlights that this policy primarily covers overhead expenses such as rent, utilities, and other necessary costs associated with keeping the business running while the owner is disabled. This ensures that the business can maintain its operations and obligations, making it distinct from other types of coverage focused on employee compensation or medical costs.

The other options, while related to business operations, do not align with the primary purpose of a Business Overhead Expense Policy. For instance, covering employee salaries during disability would typically fall under a disability income policy or employee benefits rather than overhead expenses. Likewise, replacement costs for disabled employees are more aligned with workers' compensation or staffing solutions, and medical expenses for employees on leave would typically be handled through health insurance, not an overhead expense policy.