What is Premium Financing?
A premium finance loan is a specific loan issued for the purpose of paying for insurance coverage. CPF offers premium finance loans through insurance agencies, general agents, and insurance companies for personal and commercial property and causality insurance coverage. The insured signs a premium finance agreement which allows CPF to pay the insurance premium in full, on behalf of the insured. This allows the insured to pay over the course of the policy instead of one large lump sum at the beginning of the coverage period. The insurance policy itself serves as collateral, eliminating the need for additional collateral and facilitating an easy application and pre-approval process.
What are the benefits of premium financing?
Premium financing with CPF eliminates the requirement for your insured to come up with a large upfront payment to the insurance company. It allows your insured to obtain the proper insurance coverage without liquidating other assets or using their current credit capacity. With CPF your insureds can take advantage of our Flex Plus™ program to customize a payment plan that will meet their needs. They can also consolidate multiple insurance policies into one premium finance contract to allow for one single payment to cover all of their insurance needs.
Who can finance their insurance premium?
Virtually any insured, business or professional practice is eligible to finance their commercial insurance coverage.
What is the relationship between the insured and CPF?
When an insured finances their insurance premium with CPF they are entering into a contract. CPF will pay their insurance premium in full and bill the insured over the course of their policy term. By financing their insurance, the insured gives CPF a security interest in their unearned insurance premium, which when received will be applied to the outstanding loan balance due from the insured.