A deposit premium is the amount of

money Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular country or socio-economic context. The primary functions which distinguish money are as ...

required by an insurer to initiate a policy whose premiums aren't fixed, but are determined after the policy term by multiplying a premium rate by the amount of

sales Sales are activities related to selling or the number of goods sold in a given targeted time period. The delivery of a service for a cost is also considered a sale. The seller, or the provider of the goods or services, completes a sale in r ...

payroll A payroll is the list of employees of some company that is entitled to receive payments as well as other work benefits and the amounts that each should receive. Along with the amounts that each employee should receive for time worked or tasks pe ...

, or some other metric. The deposit amount is typically the estimate of what will be the final premium. It is common for the deposit premium to also be the minimum premium - a guaranteed minimum amount that applies even if the final calculated premium is less.

References

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