Glossary · People and paperwork
Insurance Endorsement
In short
An insurance endorsement is an amendment to an existing insurance policy that changes its terms or scope. Lenders often require specific endorsements to protect their interest in the collateral.
What it means in a deal
Your lender will require specific endorsements on the business's property and casualty insurance policies, naming them as an additional insured or loss payee. These protect the lender's collateral in case of damage or loss. Ensure you understand these requirements and budget for any increased premiums.
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 Insurance Endorsement
- 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?
- Is a decreasing term life insurance policy acceptable for the SBA's life insurance requirement on a 7(a) loan?
- How are appropriate business life insurance coverage amounts calculated?
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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