Operator Question: High Insurance Premium Industries

by a searcher from The University of North Carolina at Chapel Hill - Kenan-Flagler Business School

1 month ago

For operators in industries with high insurance premiums, how do you decide between using your balance sheet to cover the premiums at the discounted annual rate versus financing the payments and taking the steady monthly payments?

My thoughts in the comments.

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8 comments

intermediary from Spalding University

^Searchfunder member‌ The trucking company I just exit had the same arrangement. I've found high risk industries or litigious risk classes see this option. Much like the bank, the insurance company wishes to have all the money for investment. It is a rocky road as a buyer. Cash is king.

1 month ago | like reply | 0 likes

lender from Eastern Illinois University

^Searchfunder member‌ thank you for the tag. I find most clients pay for the insurance on a monthly basis versus funding it up front for cash flow reasons, unless they reach a point where they have the cash flow and assets to cover it.

1 month ago | like reply | 0 likes

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