Question

9 cho is a designer who owns an apparel store that offers customized products. she has three employees and rents a place to run the business. apart from the employees salary and rental expenses, she has to pay for tailoring equipment, utilities, and other miscellaneous expenses. her biggest concern is that if she is unable to return to work due to a disability or an illness, her business will be affected. she wants to purchase an insurance policy that covers the abovementioned expenses in the event of her disability. which of the following products would you recommend?
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a. business protection insurance
b. non - traditional individual disability insurance
c. key person insurance on cho
d. business overhead expense insurance
a2rvdtjwdytyefledwdycna0ngpudz09?

Explanation:

To determine the correct insurance, we analyze each option:

• Option a (Business protection insurance): Too broad; not specific to covering expenses during disability.
• Option b (Non - traditional individual disability insurance): Focuses on individual income, not business expenses.
• Option c (Key person insurance on Cho): Compensates the business for loss of a key person’s income, not overhead expenses.
• Option d (Business overhead expense insurance): Specifically covers business expenses (like rent, utilities, employee salaries) when the owner is disabled and unable to work, matching Cho’s needs.

Answer:

d. Business overhead expense insurance