Premium financing offers a way for insureds to initiate an insurance policy without paying for the policy in full up-front. Payment in full is often required for excess and surplus lines policies. Premium financing allows the insureds to more easily budget for the cost of the insurance and manage their cash flow. A down payment and signed finance agreement is all that is required to bind coverage.
We will fund the remaining balance of the premium to the insurance carrier or general agent and the policy will be paid in full. The insured will be given a payment plan that includes the balance of the premium that we funded (the principal) and interest. The policy is used as collateral until the loan is paid in full.
Premium financing with Highland Premium Finance offers benefits to both insured and agents.
Benefits For Borrowers
- Preserve working capital for day-to-day operations and investment.
- Payment plans allow for improved cash management and planning.
- Off balance sheet financing that will not impact other credit facilities.
- Interest expense may be tax deductible.
- Finance multiple policies with one agreement to create a single payment plan for all insurance coverage.
- 24-hour online account access.
- Several easy payment options.
- We’ll work with you to avoid policy cancellation.
Benefits For Producers
- Get your client to the right insurance solution for them with only the down payment required at inception.
- Finance multiple policies with one agreement.
- 24-hour online tools to access quotes, history, and account details.
- Direct access to our financing associates.