What does Overhead Expense insurance typically cover?

Overhead Expense insurance is specifically designed to cover the ongoing operational costs of a business in the event that the owner becomes disabled and is unable to work. Running costs include essential expenses such as rent or mortgage payments, utilities, and other overhead expenses necessary to keep the business functioning. This type of insurance helps ensure that the business can maintain its operations and meet financial obligations during the owner's period of disability.

Employee salaries, while important, are typically categorized under different forms of insurance or payroll protections. Equipment purchases and marketing expenses don’t fall within the scope of overhead expenses as they are considered capital expenditures or promotional costs rather than regular running costs needed to keep the business operational day-to-day. Therefore, the coverage provided by Overhead Expense insurance aligns specifically with the essential running costs necessary to sustain the business during a time of disruption caused by an owner's inability to perform their duties.