What is BOE insurance designed to cover?

Business Overhead Expense (BOE) insurance is specifically designed to cover the essential overhead costs a business incurs during a period when the owner-operator is unable to work due to a disability. This includes expenses such as rent, utilities, salaries for employees, and other operational costs that would need to be maintained even while the owner is temporarily incapacitated.

The primary purpose of BOE insurance is to ensure that the business can continue to operate smoothly during the owner's recovery period, allowing the individual time to heal without the immediate pressure of business expenses accumulating. By providing this financial support, BOE insurance helps in preserving the viability of the business in the owner's absence, making it an essential safety net for many entrepreneurs.

Other options, such as personal expenses of the business owner, health insurance for employees, or equipment repair costs, do not encompass the primary purpose of BOE insurance, which is strictly focused on covering the necessary business expenses that continue regardless of the owner's ability to work.