{"ok":true,"canonical_url":"https://dealroom.so/glossary/insurance-premium","api_url":"https://dealroom.so/api/public/glossary/insurance-premium","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-premium","term":"Insurance Premium","group":"Reading the business","definition":"This is the periodic payment for an insurance policy, covering risks like property damage, liability, or health. It's a recurring operating expense for the business.","what_it_means":"During due diligence, review the business's historical insurance costs and coverage. You'll need to secure your own policies post-acquisition, and the SBA will require specific coverage, like hazard insurance, and potentially life insurance for key principals.","url":"https://dealroom.so/glossary/insurance-premium","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":"life-insurance","term":"Life insurance","url":"https://dealroom.so/glossary/life-insurance"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"}],"related_questions":[{"question":"What factors primarily influence the premium cost of business life insurance?","url":"https://dealroom.so/sba-7a/questions/what-factors-primarily-influence-the-premium-cost-of-business-life-insurance"},{"question":"How does an insured's age affect business life insurance premium costs?","url":"https://dealroom.so/sba-7a/questions/how-does-an-insured-s-age-affect-business-life-insurance-premium-costs"},{"question":"Are business life insurance premiums generally tax deductible for the company?","url":"https://dealroom.so/sba-7a/questions/are-business-life-insurance-premiums-generally-tax-deductible-for-the-company"},{"question":"Who is responsible for paying premiums on a business life insurance policy?","url":"https://dealroom.so/sba-7a/questions/who-is-responsible-for-paying-premiums-on-a-business-life-insurance-policy"},{"question":"What are the tax implications of key-person life insurance premiums and benefits?","url":"https://dealroom.so/sba-7a/questions/what-are-the-tax-implications-of-key-person-life-insurance-premiums-and-benefits"},{"question":"Can I use prepaid expenses, like insurance premiums, as part of my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-i-use-prepaid-expenses-like-insurance-premiums-as-part-of-my-equity-injection"}]},"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 Premium","url":"https://dealroom.so/glossary/insurance-premium","source_type":"DealRoom Data"}}