Which type of coverage is designed to pay the operating costs of a small business when the owner is disabled?

Business overhead expense disability insurance is specifically designed to cover the operating costs of a small business when the owner is unable to work due to a disability. This type of insurance provides funds to pay for essential expenses such as rent, utilities, and employee salaries, ensuring that the business can continue to operate during the owner's recovery.

This coverage is critical for small business owners who rely on the business income to cover their ongoing expenses. It helps bridge the financial gap, allowing the business to maintain its operations and be in a better position once the owner is ready to return.

In contrast, personal disability insurance primarily protects the individual's personal income, but does not address the specific operating costs of a business. Accidental death coverage pays a benefit in the event of the policyholder's death due to an accident rather than addressing disability. Health insurance focuses on covering medical expenses associated with health care, which does not directly cover business operations in the event of the owner's disability.