Professional Indemnity insurance funding explained
Professional insurance, often referred to as PI Cover, is a must have insurance policy for those UK companies who offer advice or a service to clients. However, depending on what type of business you are, the yearly insurance premium can be one of the largest costs outside of payroll and office rent.
As opposed to paying the premium in one lump sum up front, we can finance this for you and break down the yearly cost to a monthly premium. Therefore in effect, you are paying and budgeting for PI cover over the term of the policy.
Can you finance professional indemnity insurance?
Yes, subject to credit, we can fund your PI cover over a one-year period.
How does it work?
The process of acquiring funding is very simple. Firstly, we will need a copy of your PI quote from your insurance company. Then we can immediately send you a quote so you can see the monthly repayments. Once you approve, we will then send your details to one of a panel of UK professional indemnity finance providers on our panel of lenders.
Normally, it will take up to 48 hours to obtain a credit acceptance. We send you the loan agreement by electronic signature, which you therefore complete online. Our funder pays your insurance company directly and then you make 12 monthly instalments.
What are the costs involved?
As the loan is over a short period of time, the actual amount of interest you pay is relatively small. Our quote will clearly outline what these costs are. However, our fees are included in the monthly premium, we do not charge you separately.
What is the average premium financed?
Our average premium is £97,000. However, the lowest PI premium we will do is £5,000.
Can you pay off the premium early?
Yes, at any time you can settle off the outstanding monthly repayments, there is no early settlement charge.
How are the monthly premiums collected?
All monthly repayments are collected via direct debit.
What are the benefits to funding a professional indemnity insurance policy?
The key benefit is you can keep the money in your business for other purposes and then accurately budget on a monthly basis. In effect, you are therefore paying for the service as you use it.
