The reason for a business having a Business Overhead Expense Disability Plan is to cover what?

A Business Overhead Expense Disability Plan is specifically designed to cover the fixed expenses of a business in the event that the owner becomes disabled and unable to work. This type of insurance helps ensure that the regular operational costs are met, such as rent, utilities, and other essential expenses necessary for maintaining the business. The plan is not intended to cover variable expenses or costs directly related to employee salaries, insurance premiums, or retirement contributions, as those expenses may not be consistently required during a period of owner disability. Instead, the focus is on allowing the business to remain viable and operational despite the owner's absence, thereby protecting the overall financial health of the business.