The type of disability coverage purchased by a small business owner, to cover ongoing overhead in the event of the owner becoming disabled, would be called:

The correct choice refers to a specific type of disability insurance designed to cover the ongoing expenses of a business—such as rent, utilities, and other overhead costs—if the owner becomes disabled and is unable to work. This type of insurance is essential for small business owners who want to ensure that their business can continue to operate in their absence, maintaining financial stability and protecting the investment they have made in their business.

Business Overhead Expense insurance not only pays for essential business expenses but also helps in circumventing potential financial strain, allowing the business to stay afloat while the owner recovers. This type of coverage specifically targets the financial impact of a disability on a small business, distinguishing it from other types of insurance that may focus on different aspects of business or personal financial planning.

In contrast, other options do not provide this specific coverage. For example, a Buy-Sell Agreement is related to business succession planning and defines how a business interest will be transferred upon the death or disability of an owner, but it doesn't cover ongoing expenses. Key Employee Insurance protects against the loss of a key employee by providing funds to the business in case of that individual's death, rather than covering the overall operational expenses of the business. Lastly, Disability Reducing Term insurance is focused on