New Jersey Life and Health State Practice Exam

The correct choice is business overhead expense policy. This type of insurance is specifically designed to cover the ongoing expenses of a business when the owner becomes disabled. It typically helps pay for fixed costs such as rent, utilities, and employee salaries, enabling the business to continue operating while the owner is unable to work.

A business continuity plan refers to a comprehensive strategy that organizations implement to ensure that critical operations can continue during a disruptive event. While it is essential for overall risk management, it does not provide financial coverage for ongoing business expenses during a disability.

General liability insurance protects businesses against claims of bodily injury, property damage, or personal injury occurring on their premises or due to their operations. This is vital for safeguarding against lawsuits but does not specifically address the internal financial needs of a business due to the owner's disability.

Disability income insurance typically provides personal income replacement for an individual who is unable to work due to a disability, covering the individual rather than the operational costs of their business. Thus, while important for personal financial security, it does not serve the same purpose as a business overhead expense policy.