Insurance Premium Funding
- Quick Reference Guide

What is Insurance Premium Finance (IPF)?

Insurance premium finance (IPF) is a fixed-rate, full recourse loan made to a business customer to finance the total cost of premiums on certain types of business insurance.

Cancellable business insurance policies are generally considered to be secured lending. If the customer defaults, the bank can cancel the policy, obtain a refund of the unused portion of the premium and clear the debt.

Non-cancellable business insurance policies are generally considered to be unsecured lending. This is because the policy cannot be cancelled and the bank cannot get any refund. Types of non-cancellable insurance policies include workers’ compensation and professional indemnity. Unsecured lending also includes practising certificates and motor vehicle registration fees.

Insurance Premium Finance is available on most types of business insurances, including:

• General business insurance premiums

• Motor fleet policies

• Public liability premiums

• Professional indemnity

• Motor registration fees and CTP insurance

* Check whether cancellation fee is applicable. Cancellation fee = Unsecured
** Landlord Insurance can be funded only if it is over a commercial property

Only Australian or United Kingdom licensed insurers/underwriters are acceptable.


1. Should a policy not be listed then confirmation must be made with the insurer to determine if cancellable.
2. If an insurer provides the policy as non-cancellable, it will be treated as such.

Contact the office

We are here to help you now and in the long term to discuss any concerns or strategies to improve your finances.

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Disclaimer: This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances. Your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. © 2020