What is the purpose of a Business Overhead Expense insurance policy?

The purpose of a Business Overhead Expense insurance policy is to cover the ongoing business expenses during the total disability of the owner. This type of insurance is designed to pay for essential operational costs that continue even when the owner is unable to work due to a disability. These expenses typically include rent, utilities, payroll for employees, and other necessary operating costs that help keep the business running during the owner's absence.

While other options address important aspects of business ownership, they relate to different insurance needs rather than the specific objective of Business Overhead Expense coverage. For example, providing salary for business owners typically falls under other disability insurance categories which are specifically designed to protect the owner's income. Similarly, funding employee benefits during disability is generally not covered by Business Overhead Expense insurance, as it focuses on business expenses rather than employee benefits. Lastly, the purpose of buying out disabled partners relates to buy-sell agreements and partnership insurance, not the overhead expenses incurred by a business during the owner's disability. Therefore, option B most accurately reflects the intended function of a Business Overhead Expense insurance policy.