{"ok":true,"canonical_url":"https://dealroom.so/glossary/insurance-coverage","api_url":"https://dealroom.so/api/public/glossary/insurance-coverage","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"insurance-coverage","term":"Insurance coverage","group":"Reading the business","definition":"This refers to the types and amounts of insurance policies a business holds, protecting it from various risks like property damage, liability claims, or business interruption.","what_it_means":"Review existing insurance coverage during due diligence to ensure it's adequate and transferable. Post-closing, you'll need to secure your own policies, including general liability, property insurance, and potentially key man insurance, as required by the SBA.","url":"https://dealroom.so/glossary/insurance-coverage","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"key-man-insurance","term":"Key man insurance","url":"https://dealroom.so/glossary/key-man-insurance"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"liability","term":"Liability","url":"https://dealroom.so/glossary/liability"},{"slug":"life-insurance","term":"Life insurance","url":"https://dealroom.so/glossary/life-insurance"}],"related_questions":[{"question":"How are appropriate business life insurance coverage amounts calculated?","url":"https://dealroom.so/sba-7a/questions/how-are-appropriate-business-life-insurance-coverage-amounts-calculated"},{"question":"What is the typical amount of key-person life insurance coverage needed?","url":"https://dealroom.so/sba-7a/questions/what-is-the-typical-amount-of-key-person-life-insurance-coverage-needed"},{"question":"How is the ideal coverage amount for key-person life insurance typically calculated?","url":"https://dealroom.so/sba-7a/questions/how-is-the-ideal-coverage-amount-for-key-person-life-insurance-typically-calculated"},{"question":"Does the SBA require specific types of insurance coverage on collateral used for a 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/does-the-sba-require-specific-types-of-insurance-coverage-on-collateral-used-for-a-7-a-loa"},{"question":"How does a lender ensure sufficient life insurance coverage for multiple key principals with varying ownership stakes?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-ensure-sufficient-life-insurance-coverage-for-multiple-key-principals-wi"},{"question":"Does the SBA require a specific debt service coverage ratio (DSCR) for approval?","url":"https://dealroom.so/sba-7a/questions/does-the-sba-require-a-specific-debt-service-coverage-ratio-dscr-for-approval"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Insurance coverage","url":"https://dealroom.so/glossary/insurance-coverage","source_type":"DealRoom Data"}}