Why skipping the insurance conversation could stall your loan — and how Comegys can help keep things moving

If you’re thinking about applying for an SBA loan — whether to expand your business, invest in new equipment, or recover from the latest storm season — you’re not alone. Across Florida, more small and mid-sized businesses are leaning on SBA funding in 2025 than ever before.

But here’s the thing: while many business owners focus on loan applications, credit reports, and business plans, they often overlook one of the most critical steps — insurance.

And that oversight?
It can delay your approval, stall your disbursement, or even disqualify your application entirely.

At Comegys Insurance Agency, we work with business owners every week who are shocked to learn that specific insurance policies are required to secure an SBA loan. These aren’t optional coverages. They’re non-negotiables — and if they aren’t in place when the lender asks, it can be the difference between moving forward and missing out.

So let’s change that.

In this blog, we’ll walk you through what business owners like you need to know about SBA insurance requirements in 2025, how to avoid common mistakes, and why Comegys is your go-to partner for getting it done right — locally, quickly, and confidently.

Let’s start with the basics.

The Small Business Administration (SBA) doesn’t lend money directly. Instead, it works with approved lenders (like banks and credit unions) to offer loans with better terms — like lower interest rates, longer payback periods, and lower down payments — because the SBA guarantees a portion of the loan.

That guarantee reduces risk for lenders and opens doors for business owners who may not qualify for traditional financing.

And in 2025, SBA loans are being used for:

• Storm recovery (especially across hurricane-prone areas of Florida)

• Expanding or opening new locations

• Hiring and equipment purchases

• Commercial real estate and renovations

• Cash flow stabilization post-emergency

But here’s the catch: that lower risk for lenders is only acceptable if your business is insured against potential loss. That’s where many business owners hit a wall.

When you borrow through an SBA-backed loan, your lender is going to require specific types of business insurance coverage to protect the investment. That includes:

• Protecting the property or assets you’re buying with the loan

• Making sure your business can still operate (or repay the loan) in the event of a loss

• Reducing liability if someone is injured or a claim is made against your company

If those coverages aren’t in place — and properly documented — your loan can’t close.

Think of it like trying to buy a house without home insurance. The bank won’t allow it. Same goes for business lending through SBA.

Here’s what most SBA lenders are looking for — especially in Florida:

1. Hazard Insurance (Property Insurance)

This is the most common requirement. If your loan involves real estate, inventory, or equipment, you’ll need insurance that covers damage from:

• Fire

• Theft

• Vandalism

• Windstorms (important in Florida)

• Other physical risks

🔎 Comegys Tip: Hazard insurance must often cover the full replacement cost of any assets tied to the loan. Not just their current value. 

2. Flood Insurance

If your business is in a FEMA-designated flood zone (common in Florida), lenders will require flood coverage — even if you’ve never experienced flooding before.

🔎 Comegys Tip: Flood insurance must often come from the National Flood Insurance Program (NFIP) or be compliant with SBA standards. 

3. Liability Insurance

Most SBA lenders want to see general liability insurance in place. This protects your business if someone gets hurt on your property or if there’s damage related to your operations.

4. Life Insurance

If you’re the sole owner or your business depends heavily on you (or another key person), life insurance may be required — with the lender named as the beneficiary — to protect the loan repayment.

5. Business Interruption Insurance

While not always required, this can make your application stronger and helps cover lost revenue in the event your business has to temporarily shut down (such as after a hurricane).

Here’s a reality check: we’ve seen SBA loans get held up for weeks simply because the borrower didn’t have the proper insurance in place.

Here’s how it typically plays out:

1. You go through all the effort of completing your loan application.

2. The lender says “You’re approved — pending insurance.”

3. You scramble to find a policy.

4. It doesn’t meet SBA requirements.

5. You start over. The clock ticks. Your funding gets delayed.

Sound stressful? It is. That’s why working with an insurance agency that understands SBA loans is a game-changer.

At Comegys, we know what lenders look for and what documents they require. We don’t just sell you a policy — we tailor it to the SBA’s exact expectations so you can move forward without unnecessary back-and-forth.

We’ve seen it all. Here are the top pitfalls to avoid:

• Assuming your current business policy meets SBA criteria (it often doesn’t)

• Submitting policies with insufficient limits

• Forgetting to list the lender as a loss payee or mortgagee

• Missing flood coverage in required zones

• Delaying your insurance search until the last minute

✅ Comegys Solution: We offer quick, complimentary policy reviews to flag any red flags before you apply.

We’re not just here to sell policies. We’re here to be your strategic partner — especially when funding your business is on the line.

Here’s how we support SBA applicants like you:

• Local Knowledge: We understand the Florida landscape and SBA rules better than anyone.

• Lender Coordination: We communicate directly with your loan officer, if needed, to confirm coverage meets all requirements.

• Quick Turnarounds: We work fast, because we know delays cost you money.

• Smart Policy Design: We don’t over-insure or under-protect. We match your coverage to your loan terms and business needs.

Whether you’re expanding your business, recovering from a storm, or preparing for a major purchase, Comegys helps you get your insurance squared away the right way — the first time.

Imagine this:

• A local roofing company wants to expand to a second warehouse. Their SBA 7(a) loan hits a snag — their insurer doesn’t provide wind coverage.

• They call Comegys. We review their entire policy package, restructure the hazard coverage, and get the correct documentation to their lender within 48 hours.

• The loan closes. Their expansion moves forward.

Or:

• A coastal restaurant is applying for SBA disaster relief after a hurricane. Flood coverage is a requirement — but their policy doesn’t meet the elevation data FEMA requires.

• Comegys steps in, connects with NFIP, and gets a compliant policy in place fast. Funding arrives in time to re-open for the season.

The bottom line?

If you’re preparing to apply for SBA funding in 2025, don’t leave insurance for the last minute. It’s not a formality — it’s a fundamental part of your loan package.

By partnering with Comegys Insurance Agency, you can avoid last-minute headaches, ensure compliance with SBA requirements, and get the confidence to move forward with your funding goals.

Let’s get ahead of the process. We’ll review your current coverage, identify gaps, and build a package that supports your loan and protects your business.

📞 Call us today
📩 Or request a policy review at comegys.com/contact