Insurance premium financing is an ideal solution for insurance providers, agents, and brokers looking to provide the best possible service to their insureds. With a commercial insurance loan, insureds can easily maintain liquidity and access policies that might otherwise be outside of their purchasing capacity.

What is business insurance premium financing?

Business insurance premium financing involves securing a loan to cover the cost of insurance premiums. Premium finance companies pay the full balance of the premium to the insurance provider up-front. The insured then makes installment payments to the premium finance company that financed their premium.

By securing a loan and making payments over time, the insured is able to maintain a higher level of liquidity for using toward day-to-day operations. For businesses that require a healthy cash flow level to operate, insurance premium financing is a valuable option.

How much does commercial insurance cost?

The cost of commercial insurance policies can vary depending on:

  • Type of policy needed
  • Industry involved
  • Number of employees
  • Other coverage needs

Premiums are likely to cost more for higher levels of coverage, unique coverage needs, or a history of claims. Insureds with any level of coverage needs can benefit from financing their premiums. Those with special coverage needs will particularly benefit from being able to easily afford the insurance premiums they need to mitigate the costs of potential risks.

What are the benefits of premium financing?

From an insurance provider perspective, insurance premium financing is a useful tool for providing higher quality service to insureds. Insurers can sell better policies that offer more coverage because financing makes the cost of premiums more manageable. Insurance premium financing allows insurance providers to have the best of both worlds – with the full cost of premiums paid to them in advance and the knowledge that they are able to provide the best possible insurance policies to their customers.

For business owners, premium finance agreements can relieve stressors and concerns associated with cash flow needs. Because many insurance providers do not offer monthly payment plans for commercial and business insurance policies, financing accommodates tighter budgets and liquidity demands.  

Why is IPFS a trusted choice for commercial premium financing?

For over 45 years, IPFS has provided insurance premium financing for businesses of all sizes. IPFS’s solutions alleviate financial burden for business owners and provide insurance agencies with a catalyst to reach a broader audience of businesses. IPFS’s One Platform approach combines premium financing, payments, eSignature, document delivery, and storage capabilities. This suite of services streamlines operations, shortens the sales cycle, improves customer experience, and fosters business growth.

IPFS solutions empower customers to:

  • Increase overall premium finance levels and streamline the premium financing process.  
  • Reduce time spent collecting payments and optimize average collection periods.  
  • Increase income through premium financing activity and bolster working capital.  
  • Streamline payments, accounts receivable and accounts payable processes.  
  • Create a better insured experience. 

To learn more about IPFS’s premium financing solutions and One Platform approach, visit

Davie Holt

Davie Holt is the National Sales Practice Leader at IPFS, charged with driving sales excellence across all regions of IPFS. He is passionate about the insurtech space and its capability for bringing powerful tools and solutions to fruition. Davie is highly focused on providing exceptional service, support, and technology to entities throughout the insurance industry. His keen insights into the present and future state of insurance empower insurance providers to offer great experiences to their customers.


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