This insurance covers business expenses that continue when your business revenue slows or stops because you are totally disabled due to illness or accident. Some programs include partial/residual coverage and this is an important feature to have included as most claims are for people whom have been off for a while and then try to work.
Benefit payments begin once you have satisfied the elimination period, normally 30, 60 or 90 days and continue until: you recover, or you reach your benefit maximum. The maximum benefit will depend on what you qualify for and your need. The other variable is the length of time for the monthly benefit to be paid and 1 year is common but other alternatives exist.
Based on present legislation, premiums for this insurance are tax deductible, therefore, benefits would be taxable.