A policy that reimburses a business for fixed expenses, such as payroll and overhead, when the owner is disabled, is called

• A. Disability Income
• B. Business Overhead Expense
• C. Accidental Death and Dismemberment
• D. Long-Term Care

Answer: (B)

Focus is on protecting a business’s ongoing fixed expenses during the owner’s disability. A policy designed for this purpose reimburses small-business fixed costs—like payroll, rent, and utilities—so the business can continue operating even when the owner can’t work. It’s not personal disability income, which pays the owner’s own lost wages, nor AD&D, which covers accidental death or dismemberment, nor Long-Term Care, which pays for care services. So this type of coverage best fits the description by aiming to keep the business financially afloat during a disability.