What is the typical deposit to bind the liability policy?
The liability insurance carrier will require the full deposit to bind the liability policy. The deposit cannot be broken up into payments. The insurance carrier requires a deposit of 25% of the premium plus 100% of the tax/fees. Below is an example of how the deposit is calculated:
Tax/Fee : $1,000
Deposit is 25% of the premium ($5,000)
- 25% of $5,000 = $1,250
- 100% of tax/fee = $1,000
- Total Deposit to bind coverage: $2,250
Remaining balance can be financed and paid in 10 equal installments. First installment is due 30 days from the bind date.