What insurance coverage is needed to take out a loan when starting a business?

It depends on state regulations. But usually the bank will want you to have some sort of insurance to cover their butts. ask the bank about its specific requirements.

See link below.































www.sba.gov

Like conagher1851 said it's going to depend partially on the state and partially on the Bank.































Most unsecured loans don't require insurance since the only thing the bank could insure is you. Thats why they look at credit and capacity (the ability to pay your debts) so closely.































Most secured loans require some form of insurance in addition to a set lien position. For instance, my bank won't allow me to grant a business Real Estate Loan for a property unless we are in 1st lien position and the owner has met all state insurance guidelines (flood if it's in a flood plane, wind for wind zones, etc.).































Ask the banks you're talking to for their Underwriting Guidelines. Most states in the US require the bank to provide that information upon applicant request anyway, so they should have it close to hand.