Which type of disability insurance covers expenses related to running a business while the owner is disabled?

The business overhead expense policy is specifically designed to cover expenses that a business incurs while the owner is unable to work due to a disability. This type of insurance helps pay for ongoing operational costs, such as rent, utilities, payroll for employees, and other essential expenses that keep the business running during the owner’s disability period. It is particularly beneficial for business owners who need to maintain their business operations while recovering.

In contrast, individual disability insurance typically covers the lost income of the insured individual but does not address the business's operational costs. Long-term disability policies also focus on replacing income for individuals over an extended period but do not specifically cover business expenses. Short-term disability policies may cover a portion of income during a limited time but similarly do not provide support for business expenses. Thus, the business overhead expense policy is the most suitable choice for addressing the unique needs of disabled business owners.