Which type of business insurance is designed to cover the expenses required to continue operations while the owner is disabled?

The correct answer is business overhead expense policy. This type of insurance specifically provides coverage for the ongoing operational expenses of a business in the event that the owner becomes disabled. It is designed to cover fixed costs such as rent, utilities, and salaries, allowing the business to maintain its operations during the owner's absence due to disability.

This policy is particularly important for small business owners who may not have the financial reserves to cover these fixed expenses during a period of incapacity. By ensuring that these costs are met, the policy helps prevent the business from suffering irreparable financial harm and allows it to remain viable until the owner can return to work or until alternative arrangements can be made.

Key person insurance focuses on providing financial support to a business in the event of the death or disability of an essential employee or owner, but it does not specifically address ongoing operating costs. General liability insurance protects against legal claims for injuries or damages that occur on the business property or as a result of business operations, while property insurance covers physical assets and the resulting loss or damage. Neither of these options is tailored to support continuous operations during a disability.