Insurance Premium Funding
Spread Your Insurance Costs Into Monthly Payments

Insurance premiums can be a significant annual expense for businesses. Premium funding lets you pay in monthly instalments — freeing up cash flow for your core operations.

What Is Insurance Premium Funding?

Insurance premium funding (IPF) is a short-term loan that pays your annual insurance premiums upfront, allowing you to repay the amount in monthly instalments — typically over 10 to 12 months.

Instead of paying one large lump sum at renewal time, you make smaller, predictable monthly payments. This preserves your working capital and keeps your business cash flow healthy.

Premium funding is available for virtually all types of business insurance including professional indemnity, public liability, workers compensation, property insurance, motor fleet, and more.

What Insurance Can Be Funded?

🏢

Business Insurance

Public liability, professional indemnity, product liability, and general business insurance packages.

👷

Workers Compensation

Spread your workers comp premiums into monthly payments — particularly valuable for labour-intensive businesses.

🏗️

Construction Insurance

Contract works, construction liability, and builder's warranty insurance — often the largest annual costs for builders.

🚗

Motor Fleet

Commercial motor vehicle insurance for fleets of any size — from a few vehicles to hundreds.

🏥

Professional Indemnity

Essential coverage for professionals — doctors, lawyers, accountants, engineers, and consultants.

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Property Insurance

Commercial property, landlord insurance, strata insurance, and property owner's liability.

How It Works

1️⃣

Get Your Renewal

Receive your insurance renewal notice with the annual premium amount from your insurer or broker.

2️⃣

Apply for Funding

We submit your premium funding application — typically approved within 24 hours with minimal paperwork.

3️⃣

Premium Paid in Full

The premium funder pays your insurer the full annual premium upfront, so your coverage is immediately active.

4️⃣

Monthly Repayments

You repay the funded amount in equal monthly instalments over 10–12 months, plus a small funding charge.

The total cost of premium funding (the interest/funding charge) is typically 3–8% of the annual premium. For many businesses, this is a small price to pay for improved cash flow management.

Benefits of Premium Funding

Frequently Asked Questions

How much does premium funding cost? +

The funding charge is typically between 3–8% of the annual premium, depending on the funder, your premium amount, and the term. For a $10,000 annual premium funded over 10 months, the total cost would be approximately $300–$800 in funding charges — a small price for improved cash flow.

Do I need good credit to get premium funding? +

Premium funding is generally easier to obtain than other forms of business finance because the insurance policy itself acts as security. Most applications are approved based on the insurance being with a licensed Australian insurer, rather than detailed credit assessment.

What happens if I cancel my insurance mid-term? +

If you cancel your insurance policy, any refund from the insurer is first applied to repay the outstanding premium funding balance. Any remaining refund is returned to you.

Can I fund multiple insurance policies together? +

Yes. Many businesses bundle multiple insurance policies into a single premium funding arrangement — for example, combining public liability, professional indemnity, and property insurance into one monthly payment.

Is premium funding available for personal insurance? +

Premium funding is primarily designed for business insurance. Personal insurance policies (such as home and contents, personal motor, or health insurance) are generally not eligible for premium funding.

How much does it cost to use Finance Hub? +

Our assessment and comparison service is provided at no cost to you. If you proceed with premium funding, the funder pays us a commission. You will never receive an invoice from us for our broker services.

Related Services

Ready to Spread Your Insurance Premiums?

Get a free assessment to see how premium funding could improve your business cash flow. No obligation, no cost.

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