What is typically NOT a part of a Business Overhead Expense policy?

A Business Overhead Expense (BOE) policy is designed to cover the ongoing operating expenses of a business in the event that the owner becomes disabled and is unable to work. This type of policy typically covers necessary expenses that an organization must continue to pay in order to keep the business running.

Equity buyout costs are generally not covered by BOE policies because these costs are related to the purchase of ownership interest in the business, rather than the essential expenses required for operational continuity. Equity buyout payments are contingent on the management of ownership transitions and investments, which do not align with the primary purpose of ensuring that fixed operational expenses are covered during a period of disability.

In contrast, maintenance costs for equipment, rent for office space, and salaries of employees are all considered essential overhead expenses necessary for keeping the business functioning. A BOE policy would typically include these expenses to help maintain the business's operations without the owner, allowing it to sustain itself until the owner can return to work or until a different business structure can be implemented. This makes the coverage relevant solely to operational needs rather than ownership transfers or financial arrangements related to equity stakes.