Many states don’t require business owners to carry hazard insurance. But it’s still a good idea to have this coverage to help protect your business’ property. Without it, you’d have to pay out of pocket for repair or
replacement costs.
Hazard Insurance for an SBA Loan
Most lenders, like the SBA, may have certain requirements you must meet to get a
small business loan. If you’re applying for a
Small Business Administration (SBA) loan, you may need hazard insurance to meet loan rules. The SBA requires hazard coverage for loans over $25,000 when business property, such as a building, equipment or inventory, is used as collateral.
Economic Injury Disaster Loans (EIDL)
The SBA also offers
Economic Injury Disaster Loans (EIDL) to help small businesses that lose income because of natural disasters like hurricanes, wildfires, floods and droughts, as well as other major emergencies.
If you’re applying, you may need hazard insurance for an EIDL. The loan may require coverage to meet SBA guidelines and help protect your business property.
Be sure to read the
SBA loan insurance requirements carefully, as some businesses may need specific coverage to comply with loan conditions.
Hazard insurance helps cover property damage from:
- Fire
- Theft
- Lightning
- Wind
- Natural disasters, like blizzards or hailstorms
If you can’t open your business because of covered property damage, hazard insurance can also help replace your lost income.
We’re an
admitted insurance company with more than 200 years of experience. From our claims specialists, who can guide you through filing a claim, to our
Complex Liability Solutions group that helps customers with higher hazards, we’re dedicated to addressing our customers’ unique needs.
Get a
quote for hazard insurance today and find out how we can help protect your business.
