Overhead Expense Disability Income Policy

Definition of "Overhead expense disability income policy"

Type of disability income policy used to provide funds for the ongoing monthly business expenses (such as employee salaries, utility charges, rent, and equipment payment due) necessary to maintain continuing operations in the event an owner/key person becomes disabled. Generally, there is a 60-day elimination period after which monthly income payments commence until a stipulated aggregate limit has been reached.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Insurance Terms

Frequency and severity of accidents resulting from conditions and environment surrounding one's workplace. Occupation is an important underwriting factor when considering an applicant for ...

Same as term Cargo Insurance: shipper's policies covering one cargo exposure or all cargo exposures by sea on all risks basis. Exclusions include war, nuclear disaster, wear and tear, ...

Coverage on all risks basis for such items as binders, reapers, harvesters, plows, tractors, pneumatic tools and compressors, bulldozers, and road scrapers. Excluded from coverage are wear ...

Number of bits a modem can receive or send per second. ...

Agent who is licensed and who markets and services insurance policies in a state in which he or she is not domiciled. ...

Relationship of the frequency of deaths of individual members of a group to the entire group membership over a particular time period. ...

Person who commits a tort, a type of wrongful act, that causes injury or damage. ...

Rate-making division of insurance services offices (ISO) for inland marine insurance coverages of member companies. ...

Expenses taken out when benefits are paid. For example, a specific dollar amount is subtracted from a monthly income payment for company expenses. ...

Popular Insurance Questions