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Build a Profit Center
From Premium Finance

Tired of little to no commission on the premium financing you arrange?  Sick of having to beg for better terms or rates?  Turn that premium financing into a profit center for your organization – all without any additional work, staff, expensive software to buy, or high fixed capital expenses. For over 30 years we’ve managed and operated premium finance companies from coast to coast. Take control of the entire process by owning your own premium finance company and earn far more than any commission program.

We do all the work, you earn all the profit!

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Not making at least $30-40,000 per million in financing? You can be.
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Years In Business
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Put The Profit From
Premium Finance Where It Belongs -
In Your Pocket.

Our clients typically earn $30,000 – $40,000 (before taxes) per million dollars in financed premiums they arrange annually – or more. If you are arranging insurance premium financing for your insureds through a traditional premium finance company, you are throwing away money. With COST, you determine your rates and terms for your premium finance company, and all late and cancellation fee income generated is 100% yours. With our per-account service fee structure, there’s almost no fixed expenses. Contact us today to find out just how profitable our program can be for your organization!

Average Amount Financed MonthlyAverage Account Size Net Annual Profit
$100,000$5,000$45,600
$100,000$10,000$39,610
$250,000$5,000$114,512
$250,000$10,000$99,075
$500,000$5,000$228,312
$500,000$10,000$198,712

The above conservative estimates anticipate no capital investment in your company – investing your own funds will increase profits considerably and in some states, capitalization is required. The profit to be generated from our program is dependent on several variables, including the amount financed, average account size, amount of invested capital vs. borrowed money, float, late charges, rates you charge, etc. We can tailor figures specifically for your organization.

What We Do

When it comes to managing and operating premium finance companies for our clients, the short answer is that we do just about everything -
but here's some more details on what makes up our turnkey solution to owning your own premium finance company. Click to find out more.

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Operations

Our operations team is the nerve center of your premium finance company. They book accounts, send notices and billing statements, process payments, and more.

Operations

COST handles the entire day-to-day operations of the premium finance companies we manage on behalf of our clients. This means that owning your own premium finance company with us requires little to no work for you and your staff - you can remain focused on your core business while COST manages the premium finance company. Our operations team is the heart of what we do every day on behalf of our clients. Everything that a "standard" or "typical" premium finance company does, our operations team does for our clients.

 

From the moment an account is booked until the final payment is made, our operations team is there - sending the initial notices of financing to the carrier and general agencies, the billing statements or coupons to the insured, and sending late notices, cancellation notices, and reinstatement requests - all of which our clients receive or have online access to view at any point. In addition, our operations team processes payments and return premiums every day, posting them to the correct account and creating a daily bank deposit. Checks received are converted to electronic deposits and not physically deposited.

Our operations team is also the primary point of contact for your insureds and your staff - we handle any account questions, provide information on the premium finance process, and supply documents and data to ensure that all parties involved understand where an account stands. Our personalized approach means that your insureds never know they are dealing with COST - only your premium finance company. We secure a phone number for your company (in the area code of your choice), answer the phones as your company, and COST's name never appears on any forms or documents.

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Accounting

Our accounting team manages the policy funding process and prepares monthly accounting reports for you, including P&L statements, balance sheets, banking, and end of year.

Accounting

Our dedicated accounting team handles all the accounting procedures necessary for the operation of a premium finance company. Our Chief Financial Officer, Travis Klingler, had over a decade as a certified public accountant before joining COST. His knowledge and understanding of both accounting and premium financing is an invaluable resource for our clients.

On a daily basis our accounting team processes banking transactions, monitors lines of credit and available capital for our clients, initiates funding of policies to agents, carriers, and general agents, and balances deposits, and provides advice and counsel to our clients on financial matters regarding their premium finance company.

Shortly after the end of each month, our clients receive their monthly accounting packet from us. Included in this monthly report are the balance sheet, profit & loss statement, trial balance, general ledger, reconciliation summary, bank statements, and various other reports generated from our software platform. These reports ensure that our clients have full transparency as to the activities and status of their premium finance company. At the end of the year, a summary packet is provided to enable our clients to prepare and file taxes for their premium finance company.

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Licensing

We prepare and file the licensing paperwork for your premium finance company, handle yearly renewals and annual reports, and interact with the states on your behalf.

Licensing

Depending on your state or states of operation, your premium finance company may need to be licensed. We assist in this process for our clients by supplying all the necessary forms and documentation, working with our clients to ensure that the applications and supporting documents are filled in completely and accurately, and ensuring that other requirements like fingerprinting or background checks are completed in a timely manner. Once the applications have been submitted, we interact with the states throughout the process until the license is issued.

Our role in licensing doesn't just end once your company has secured a license, however. We handle any yearly renewal licensing processes, completing renewal forms, annual reports, and providing information to the state licensing bodies as requested - as well as acting on our client's behalf for any audits conducted.

Many states do not require a license for commercial premium financing. In those states, the startup process with COST is dramatically decreased, as the time it takes to have a premium finance license application approved varies wildly by state. We're happy to go through the licensing requirements and timing with you.

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Technology

Our online quoting and account platform is easy to learn and easy to use, yet powerful enough to provide features like e-signature, e-billing, and full API integration options.

Technology

The COST online system enables you to quote, sign, and submit premium finance agreements electronically – saving you time and effort and streamlining the booking process. Contracts are sent through our system and reviewed by our personnel to verify compliance with applicable state laws and client guidelines. The instant the contract becomes live, our system generates the account number for the contract as well as all notices for the insured, the applicable insurance companies and/or general agencies, and the insurance agency. As with everything else in our system, this information is processed in real-time, so your users know immediately of any activity on any of your accounts. Additionally, users can also generate endorsement or “add-on” quotes without having to call us, saving time and effort.

As technology grows and changes in the insurance and premium finance industries, integration has become more and more prevalent. Our platform utilizes a REST API environment that can be interacted with by your own agency management or software platform. If can change or code the software you run, you can integrate with our system, eliminating the need for duplicate data entry of premium finance quotes.

All our clients enjoy the benefits of our comprehensive data safety & security procedures, which ensure that each of the premium finance companies we operate and manage maintain distinct and secure records and data. Policyholders are protected by our Policyholder Information Security & Confidentiality procedures. We utilize alarmed building security, locked bin shredding, keyring tokens, network firewalls, and anti-hacking/anti-virus prevention. Data backups are an important and necessary step in the safety of your premium finance company, and we perform daily and weekly/monthly backup routines on all company information. All document retention is done in accordance with applicable state laws. Digital copies of all documents, including payment receipts and copies of checks, are retained per state requirements.

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Customer Service

We treat your insureds with first-class personal service. We provide multiple payment options, including credit cards and ACH. Insureds can pay online or via phone 24/7, 365.

Customer Service

We understand that your insureds are the lifeblood of your organization, so COST works tirelessly each day to provide your insureds with the same great level of customer service that they receive from you. Your can access their account information online at any time or call our 24/7 phone support to make payments whenever they need. Once an account is booked for an insured, if their email address has been input into our system a welcome email with access into the online portal is sent.  This provides access for insureds to view their account with your premium finance company and make payments online if they wish.

Your insureds can mail their premium finance payment to us for posting and processing, however, we also offer the ability to accept alternative forms of payment either online or over the phone, including:

  • One-Time ACH/EFT – a single debit from the borrower’s checking account
  • Credit Card – a non-recurring debit from either a VISA or MasterCard
  • Recurring ACH – a debit from the borrower’s checking account done on the payment due date or on a date of the insured’s choosing

All these payment methods are available to your insureds at no cost to you. Any fees charged by the bank or processing company are paid by the insured but making these alternative payment methods available can be helpful in avoiding cancellation procedures on an account. For those policyholders without immediate access to the internet, alternative forms of payment offered can be made via phone.

Our phone payment center is available 24 hours a day, 365 days a year for your insureds to make payment over the phone - your insured will talk with a human being, not a computer IVR system.

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Collections

Our collections department will work with you and your insureds to make sure than outstanding balances are paid, and keep you involved in the process every step of the way.

Collections

While premium financing is an extremely secure form of lending, some general guidelines should be followed to ensure that your loans stay collateralized and therefore no shortages occur. Simple rules like limiting the number of payments to less than 11 (not including the down payment) and taking enough down payment to cover policy variables like auditable worker's compensation policies, ICC trucking policy filings, and short-rate cancellation policies.

If a shortage does occur, or if the insured has an outstanding balance due, our Collections department will work to collect any outstanding amount owed to your premium finance company. This includes the sending of letters, emails, and placing calls. We have developed the timing of our collections schedule over 30 years to maximize opportunities to collect any outstanding balances. Our clients receive monthly reports and updates on any accounts with balances due and are advised and consulted with every step of the way.

However, if after all of our collection efforts have been exhausted, it may be recommended that an account be turned over to a collection agency. Only after our client approves sending an account to collections do we place it with a collection agency. We work with several reputable collection agencies across the country, and maintain oversight of their collections activities in order to make certain every possible effort is being made to collect. Again, accounts falling into a collections status is rare, but we do everything possible to collect any outstanding balances due for our clients.

Getting Started

Stop throwing away money using traditional premium finance companies!  We don’t just help our clients create significantly greater income, we’re there every step of the way providing guidance and utilizing over three decades of experience in business to assist you in every aspect of premium financing. 

Setup & Formation

COST charges a nominal one-time setup fee, which you submit along with our contract. You’ll form the company and, if necessary, compile any corporate documents needed for licensing.

Licensing

If the states you plan to do business in require that your premium finance company be licensed, COST will oversee the entire licensing process, preparing and submitting forms and working with the states.

Funding

If you wish to augment your starting capital with a line of credit, COST will make introductions to one of several banks that readily provide funding to our clients, or we’ll work with a lender of your choice.

Setup, Training, & Startup

Once any licenses needed have been obtained and funding established, we’ll configure our software for your lending rates and terms, train your staff, and you can start doing business.

Our Executive Team

Collectively, our team at COST has over 90 years of combined experience in the premium finance industry.
Click one of our smiling faces to find out more about our executives.

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David E. Gebhardt
Chairman
Chief Executive Officer

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David E. Gebhardt

Our founder, Dave started COST Financial Group, Inc. in 1989 after a long career in the insurance industry. Dave actively consults with insurance and banking organizations within the premium finance industry as well as with state agencies regarding regulations related to premium financing.

Because of his unique background in both insurance and premium finance, Dave acts as an expert witness to legal firms on cases pertaining to premium financing and is COST's subject matter expert on all things premium finance.

Dave holds a bachelor's degree from Southern Illinois University in Carbondale, Illinois.

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Travis Klingler
Executive Vice President
Chief Financial Officer

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Travis Klingler

Travis joined COST in 2015 after a long career as a certified public accountant with a large regional accounting firm in St. Louis, Missouri. Travis oversees all financial matters for both COST and the premium finance companies we manage. His strong understanding of accounting, auditing, and capital management assist our clients in maximizing the profit potential of their premium finance company.

Travis holds both a master's degree and a bachelor's degree in Accountancy from Southern Illinois University in Edwardsville, Illinois.

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Chris Gebhardt
Chief Technology Officer
 

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Chris Gebhardt

Now in his 21st year with COST, Chris oversees all information technology development and implementation for COST, frequently interacting with our clients and vendors to ensure that the technologies COST implements meet the needs of our clients and conforms to industry standards and expectations.

Chris holds a master's degree in Information Systems from Minot State University in Minot, North Dakota and a bachelor's degree in Information Technology from Lindenwood University in St. Charles, Missouri.

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Chris Gunn

"This is one of those deals where when you decide to start it, a year or two later you will say 'We should have done this 20 years ago.' Fortunately for us, we did start ours 20 years ago!"

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Jason McElrath

"COST Financial has allowed me to create a viable source of revenue on the frequently overlooked process of premium financing. Over 20 years later, The COST Program has delivered time and time again."

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Torrin Bottrell

“I have worked with COST for nearly 25 years and I count this as one of the best business decisions I have ever made. The staff at COST Financial has always been at our side, making this a great profit center for the agency.”

Don't just take our word for it. See what others have to say about us.

The biggest regret our clients have is that they didn’t call us sooner. Not only do COST clients earn significantly more than any commission or rebate program could ever offer, but they also enjoy total control over the premium finance process. You should have the same control over premium financing that have over your existing business – and with COST, you do.

Let's Talk!

Contact us today to learn more about how owning your own premium finance company can supercharge your bottom line.

800-844-2678

info@costfinancial.com

807 W. Highway 50, Suite 4
O'Fallon, Illinois 62269

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COST Financial Group, Inc.
info@costfinancial.com
800-844-2678

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