BOE policies generally have elimination periods of fifteen- to thirty days and benefit periods of one- to two years. The average eligible overhead expenses of the business determine the policy's benefit amount. If the business owner becomes disabled, the business will receive proceeds from the policy equal to the actual overhead expenses incurred during the period of the owner's disability.

Business owners often incur loans or other financial obligations that require monthly repayment amounts. Unfortunately, the monthly payments can only be made as long as the business owner is well and able to run the business �in other words, as long as the owner is not disabled. To protect such financial obligations, and the assets that might be lost in the event of default, the business can purchase disability reducing term insurance. Should the owner become totally disabled, this coverage would provide a monthly benefit amount sufficient to cover the monthly financial obligation until it's paid off. The business is the owner and purchaser of the policy as well as the beneficiary, while the owner of the business is the insured party. In this coverage 'reducing term' refers to the fact that the monthly benefit amount is payable only for the remaining period of indebtedness or obligation.