Which of the following is true about business overhead expense policies?

Business overhead expense policies are specifically designed to cover the ongoing operating expenses of a business when the owner becomes disabled and is unable to work. These expenses can include rent, utilities, employee wages, and other necessary costs needed to keep the business running. This type of insurance is crucial for business owners as it helps ensure that their business can maintain operations and meet financial obligations during a time of disability.

The other options do not accurately reflect the purpose or characteristics of business overhead expense policies. For instance, option A refers to personal living expenses, which are typically not covered under business overhead expense policies, as these policies focus solely on business-related expenses. Option C incorrectly suggests a limitation to two years of coverage; while some policies may have particular provisions, it's not a universal truth for all business overhead expense policies. Finally, option D suggests that these policies require annual premiums, which may not always be the case, as the payment structure can vary depending on the specific terms outlined in the individual policy.