Glossary · Reading the business
Business Interruption Insurance
In short
Covers lost income and operating expenses if your business temporarily closes due to a covered event. This keeps cash flow going when you can't operate.
What it means in a deal
Many lenders will require business interruption insurance as part of your 7(a) loan's insurance requirements. It’s essential to ensure the business can continue to make loan payments and cover operating costs even if a major disruption occurs.
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 Business Interruption Insurance
- How does disability insurance complement life insurance for business protection?
- How does business overhead expense insurance differ from key-person life insurance?
- Why is long-term disability insurance considered a vital complement to business life insurance?
- When is term life insurance more suitable than permanent life insurance for business protection?
- How are appropriate business life insurance coverage amounts calculated?
- What defines 'insurable interest' for a business life insurance policy?
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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