Glossary · People and paperwork
Additional Insured
In short
A party, like your lender, listed on your insurance policy to receive protection under certain circumstances. This ensures the lender's interest in your business assets is covered.
What it means in a deal
For your SBA 7(a) loan, the lender will require being named as an "Additional Insured" on your business's hazard and liability insurance policies. This grants them direct protection and notification rights if there's a claim or policy change affecting their collateral.
Official sources
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Additional Insured
- How does an insured's age affect business life insurance premium costs?
- What happens to an outstanding business loan if a critically insured owner dies before repayment?
- Must the insured business owner provide consent for a company to purchase a life insurance policy on them?
- When is personal real estate typically required as additional collateral?
- What if the lender requests additional appraisals for assets late in the process?
- Can my personal residence be required as additional collateral for a larger SBA loan?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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