What type of insurance policy is designed to protect a business from loss of income due to the owner's disability?

Disability Income Insurance is specifically designed to provide financial support to individuals who are unable to work due to a disability. For business owners, this type of policy is crucial as it helps cover the loss of income that may occur if they become disabled and cannot perform their regular business duties. This ensures that the business can continue to meet its financial obligations, such as paying employees and covering operational expenses, during the owner’s period of disability.

This type of insurance is critical for sustaining the business's cash flow and minimizing disruption. It typically provides a monthly benefit directly to the disabled individual based on their pre-disability income, allowing the business owner to focus on recovery without the added financial stress of lost income.

The other options listed serve different purposes. Key Person Insurance provides financial protection in the event of the death or disability of a key individual crucial for business operations. Disability Buy-Sell Insurance facilitates the sale or transfer of a business interest if an owner becomes disabled, thus focusing on ownership transfer rather than day-to-day operational income. Business Overhead Expense Insurance is intended to cover fixed business expenses, such as rent and utilities, but does not directly provide income replacement to the owner. Each type of insurance addresses specific business needs, but Disability Income Insurance uniquely focuses on the