Which type of disability coverage is designed to help reduce certain business expenses?

Key employee coverage is designed to help businesses manage the financial impact of the loss of a crucial employee due to disability. This type of coverage is specifically tailored to provide benefits that can be used to cover certain business expenses that may arise from the incapacitation of a key individual whose skills, knowledge, or relationships are critical to the company's operations.

When a key employee is unable to work, the company may face costs such as hiring a temporary replacement, training new staff, or even potential revenue losses due to decreased efficiency. Key employee coverage provides the necessary financial resources to help offset these pressing business expenses, thus enabling the company to maintain stability during a challenging time.

The other types of coverage listed do not specifically address the business continuity aspect or the associated expenses in relation to the loss of a significant employee. Consequently, key employee coverage stands out as the option that directly aligns with the needs of a business in mitigating financial risks linked to the disability of essential personnel.