Wow, what kind of sumps do you guys all use?
The answer to the question is YES your understanding is correct!
if the overflow box is rated more than the pump you are fine! (As long as it’s not a syphon setup - I am amazed anyone uses these as they are so risky as they can stop for multiple reasons and hey presto, a flood and a burnt out pump.
The ones I’m used to are simple tanks underneath another tank. The top one having a hole drilled in with a pipe sticking out the top and the bottom. The one at the bottom goes into the sump, the one out the top goes up to the full line of the tank (straight up) and then has a mesh on top. But the full line is around 1”-2” from the very fullest level of the tank.
Then when the tank reaches full from the water pumped up from the sump it overflows into the pipe and back down into the sump.
If the return pump fails, then the sump needs to be big enough to take the 1” depth of the water above the pipe only along with any water in it when running normally.
As long as your return pump cannot match the rating of the pipe, you are sorted. If you keep big fish, remove the mesh for extra peace of mind, as long as you don’t to keep floating plants!
ok this is basic setup, and you can use valves, variable flow pumps, weirs, etc. but water going up equals water coming down and the most this can be depends on the size of the pipe.
you can set up automatic top ups like in a toilet cistern in your sump return pump chamber if you really want or you can just keep topping up regularly for any evaporation. Tbh if you do regular water changes you will get to know the running water level and will keep it to that at water change time.