Kyle Sloane, President Newtek Insurance Agency, LLC a subsidiary of NewtekOne
The credit union has sourced the opportunity, evaluated the business, underwritten the credit, and approved the loan. Then, at the point when the transaction should move to funding, the closing slows because the required insurance is missing, incomplete, or structured incorrectly.
Insurance should protect the loan, not create friction around it.
For more than 20 years, Newtek has been a CUNA Strategic Services alliance provider, helping credit unions deliver business solutions to their members. Newtek Insurance Agency’s* embedded insurance solution brings quoting, binding, and documentation directly into the commercial lending process.
Insurance is often handled outside the loan workflow. The member must find an agent, explain the transaction, request coverage, and send the documents back to the credit union.
The lending team must then determine whether the policy satisfies the loan requirements. Incorrect limits, missing endorsements, inadequate coverage, or an improperly listed lender can lead to another round of calls, emails, and document revisions.
This work often occurs late in the transaction, when the member expects the loan to close. The result is lost time, additional operating expenses, and avoidable frustration at the finish line.
Newtek’s solution makes insurance part of the lending workflow rather than a separate assignment for the member.
Information already collected in the loan application is used to generate relevant, bindable insurance options through Newtek Insurance Agency’s carrier network. The member reviews the available options, selects the appropriate coverage, and binds the policy.
The completed insurance documentation is then provided in a coordinated, lender-ready format for the closing file.
The member does not need to leave the process, start over with an outside provider, and return later with documents that may not meet the credit union’s requirements.
The embedded solution supports three coverages commonly connected to commercial loan closings.
Key person life insurance provides coverage of up to $3 million that can be assigned to the loan, helping protect the business and the credit union from the financial impact of losing an essential individual.
Flood insurance can be provided where applicable to satisfy closing requirements and protect real estate collateral.
Property and casualty insurance helps protect the business’s property, the credit union’s collateral and the company’s ability to continue operating after a covered loss.
These coverages are not presented as unrelated products after the loan has closed. They are introduced when they are relevant to the transaction and can contribute directly to a complete, properly protected closing.
A faster closing only creates value when the loan also closes correctly.
The embedded process helps place the required coverage before funding, reducing the likelihood that an insurance deficiency is discovered after the loan has closed. Proper coverage protects the collateral supporting the loan and strengthens the credit union’s overall risk position.
The member receives meaningful protection as well. A casualty, flood, or loss of a key person can disrupt operations, weaken cash flow, and affect the business’s ability to repay its debt.
Insurance is, therefore, not simply another item on the closing checklist. It is part of protecting the credit and the member’s business.
Connect with NewtekOne to see how embedded insurance can be incorporated into your commercial lending process.
*All insurance agency services are provided by Newtek Insurance Agency, LLC
**Subject to terms and conditions and technology integration.