The The insurance premium is the sum... More is the sum of money paid for activating an insurance policy and covering certain risks for an asset. It is usually quoted as a percentage of the value of the asset and the risks which are covered by the insurance policy. The amount/percentage of the The insurance premium is the sum... More is closely linked with the likelihood of the risk covered to occur – the higher the risk, the more expensive the insurance (higher premium). The IP is usually paid upfront (e.g. for one year of insurance coverage) or payments may be distributed over the time period (again paid in advance) for which the insurance policy is active (e.g. quarterly).
Leasing companies usually require that leased assets be insured. Hence the insurance premiums represent an additional expense to the lessee, be they direct (paid by the lessee to the The insurance company is a specialized... More) or indirect (paid as part of the leasing installment).