What type of expense is insurance

While insurance is accounted for as an expense, should we value it as an investment - as an asset that responds when something unforeseen happens, such as a fire, car crash or disability claim?

When viewed as an asset, the quality of insurance becomes the focal point. After all, insurance is a promise to pay, in some cases, years or decades into the future. As with the purchase of any asset, cost is one consideration but value is equally important.

Not all insurance is the same. The switch in mindset, to thinking of insurance as buying an asset, leads us as consumers to shift our decision criteria when making that choice. We focus on the due diligence required to value that asset, particularly as regards the insurance company and its owners.

General expenses are costs in order for your business to run. These are the kind of expenditures that your company acquire while performing normal business operations. There are many categories under general business expense. Administrative expense, capital expense, inventory cost, and operating expense are the basic elements under general business expense.

Operating expense , also known and abbreviated as OPEX , is classified as the ongoing cost for operating or running a business, service, product, or a system. Operating expenses are the ones you spend in order to make your business run on a day-to-day basis. Operating expenses include but is not limited to employees' wage, venue rental, electricity bills, maintenance and repairs, supplies, advertising, taxes, travel expenses, accounting expenses, and license fees.

These cuts are directly associated with the production of your goods and services. Brand Solutions. Video series featuring innovators. ET Financial Inclusion Summit. Malaria Mukt Bharat. Wealth Wise Series How they can help in wealth creation. Honouring Exemplary Boards. Deep Dive Into Cryptocurrency. ET Markets Conclave — Cryptocurrency. Reshape Tomorrow Tomorrow is different.

Let's reshape it today. Corning Gorilla Glass TougherTogether. ET India Inc. ET Engage. ET Secure IT. Suggest a new Definition Proposed definitions will be considered for inclusion in the Economictimes. Exclusions Exclusions are the cases for which the insurance company does not provide coverage.

Definition: Expense loading is the amount included in the premium charged by an insurance company to cover its administrative and maintenance costs. Description: In order to cover for their operating expenses, the insurance companies include this as a portion of the total premium payable.

Expense load is an addition to the pure premium accommodates for overhead expenditure of the insurance provider. Also See: Expense Ratio. Related Definitions. Browse Companies:.