Business overhead expense insurance
Certified Financial Planner glossary · Certified Financial Planner
Definition
Coverage reimbursing a business owner’s fixed operating costs during a period of disability.
Business overhead expense insurance in plain English
A solo dentist is out for half a year while rent, hygienist wages, and malpractice premiums keep arriving on schedule. Business overhead expense insurance reimburses those fixed operating costs during disability so the practice can survive until the owner returns or sells. It is not personal disability income and not disability buy-out coverage. Match purpose to product: overhead keeps the doors open, DI replaces salary, and buy-out funds a partner's exit.
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