Insurance Premium Finance

Insurance premium finance is a secured lending product that enables businesses and consumers to purchase insurance coverage without having to make an upfront lump sum payment of insurance premiums in full.  Businesses use premium financing as a valuable tool to achieve a variety of objectives including securing adequate insurance coverage by paying premium amounts over time, smoothing out cash flow, preserving working capital and asset liquidity for other business objectives, and maintaining other credit options. 

Our team of lawyers advises a full range of parties participating in the insurance premium finance space: 

• Premium finance companies and agencies;
• Banks and financial institutions; 
• Insureds and borrowers; 
• Insurance agents and brokers; 
• Insurance markets; 
• Captive insurance managers; 
• Fintech and insurtech providers; 
• Lenders and other capital sources for premium finance companies; and 
• Premium finance software providers. 

Clients in the property and casualty insurance premium finance market turn to the Womble Bond Dickinson team for guidance in regulation and compliance, legislative and regulatory monitoring, operations, transactional agreements between various players, obtaining and renewing sources of lending capital for premium finance lenders, mergers and acquisitions and related due diligence, collateral enhancement, support and protection, fraud detection and related policies, and collection and enforcement of loans both in and out of court and in bankruptcy proceedings. 

The firm acts as general counsel to the National Premium Finance Association (NPFA) and has provided counsel to other trade organizations both within the United States and abroad, in selected matters of importance to the insurance premium finance industry.