The word “premium” refers to the amount of money an insurance company charges for insurance coverage whether it be insurance on equipment and machinery or on business risk or on agricultural pursuits where tobacco hail cover is taken. Sometimes, these charges are more than an insured can afford to pay at one time. However, seeing that such cover is essential and cover must be taken, the insured now has the facility of paying the premium by instalments. To do this, the client borrows finance from Baruch Capital to pay the premium up front i.e. the client takes on ‘premium finance’.