Glossary · Reading the business
Insurance Premium
In short
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 in a deal
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.
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 Premium
- What factors primarily influence the premium cost of business life insurance?
- How does an insured's age affect business life insurance premium costs?
- Are business life insurance premiums generally tax deductible for the company?
- Who is responsible for paying premiums on a business life insurance policy?
- What are the tax implications of key-person life insurance premiums and benefits?
- Can I use prepaid expenses, like insurance premiums, as part of my equity injection?
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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