What does Business Overhead Expense (B.O.E.) insurance not cover?

Business Overhead Expense (B.O.E.) insurance is designed to help cover certain fixed business expenses when a business owner becomes disabled and is unable to work. The essential purpose of B.O.E. insurance is to ensure that a business can continue to meet its financial obligations during the owner's absence.

The correct answer highlights that B.O.E. insurance does not cover the owner's salary. This is critical to understand because the intention of B.O.E. coverage is to support the ongoing operational costs of running the business, such as rent, utilities, and employee wages. However, the insurance does not extend to compensating the owner for lost income, which is instead the purpose of individual disability insurance. This distinction is key as it clarifies the specific role B.O.E. plays in business financial planning and risk management.

Other options represent typical expenses that B.O.E. insurance would normally cover. For instance, business expenses (like office supplies), employee wages, and equipment repairs are considered necessary costs to keep the business running during the owner's incapacity. Understanding these nuances helps business owners and insurance professionals make informed decisions regarding their insurance needs.