Glossary · Reading the business
General Liability Insurance
In short
Coverage protecting a business from claims of bodily injury, property damage, and personal injury caused by its operations, products, or services. It's a fundamental protection for any business owner.
What it means in a deal
While not direct collateral for an SBA loan, general liability insurance is a standard requirement for all businesses, protecting you from common operational risks. Lenders expect you to maintain appropriate coverage to prevent unforeseen liabilities from impacting your ability to repay the loan.
Related terms
Common questions about General Liability Insurance
- For general business protection, should the business or individual owners own the life insurance policy?
- Can an SBA 7(a) loan be used for general business expansion?
- What are the general collateral requirements for an SBA 7(a) loan?
- What is the SBA's general requirement for lien position on business collateral?
- What are the general credit score expectations for an SBA 7(a) loan applicant?
- Can an SBA 7(a) loan be used for general business expenses like ongoing rent?
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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