Expenses
Updated: 11 March 2024
What Does Expenses Mean?
An expense is anything that money is spent on. In the context of insurance, it typically refers to the amount of money that a policyholder has to pay in premiums to receive insurance coverage over a period of time. For example, if a business has to make three payments of $3,000 per quarter for liability insurance, its liability insurance expense for the quarter will be $9,000.
Insuranceopedia Explains Expenses
Insurance is considered an expense for businesses because they typically have to pay money through premiums to receive the insurance coverage. If the business continues to pay these expenses, then it will continue to receive insurance coverage. However, if it neglects to pay them, the coverage could be terminated.
Related Definitions
Related Terms
Related Articles
Everything You Need to Know Before Choosing a Life Insurance Policy
The Future of Insurtech: How Technology is Transforming the Insurance Industry
Inside the Details of Auto Transport Insurance: An Expert Interview
Expert Insights: The Ins and Outs of Moving Insurance
Interview With Todd Taylor On Strategizing Large Group Health Insurance
Future Trends in Pain Management Billing and Insurance: Adapting to Change
Related Reading
Revealing the Most And Least Popular U.S. Insurance Companies
How to Get Into the Insurance Industry With a Finance Degree