What is FIRST Funding Solutions Program?
The FIRST Funding Solutions Program is a financing and risk-transfer option designed to help organizations manage upfront costs tied to insurance, bonds, or program participation. It can be used to spread policy premiums, surety bond expenses, or other program fees over time so smaller operators or growing organizations can maintain coverage without a large cash outlay. Typical considerations include underwriting factors, payment schedules, and any program-specific eligibility rules.
Who needs it
This type of program is commonly used by contractors, event operators, clubs and associations, and small to mid-size organizations that face seasonal cash flow swings or large single-payment obligations. Organizations with commercial liability exposures, equipment coverage needs, or commercial auto exposure often find funding solutions helpful to preserve working capital while remaining compliant with contracts or venue requirements.
What it typically covers
Funding programs generally cover the insured’s billed costs rather than the insurance policy itself. Examples include premium financing for general liability, property coverage, participant accident coverage, equipment coverage, or surety bond fees. Some programs also coordinate with specialty financing options to handle unique exposures—see Specialty Program Financing for related program structures that support niche underwriting needs.
Common exclusions or limitations
These arrangements usually do not change the underlying policy exclusions or endorsements. Limitations may include minimum term requirements, late-payment penalties, or restrictions on policies with prior losses or nonstandard underwriting factors. It’s important to review the contract to understand what is excluded from financed amounts and whether ancillary fees are included in the financing plan.
Factors that influence cost
Price drivers include the total premium or bond amount, the insured’s loss history, credit terms, length of the financing agreement, and any administrative fees applied by the program. Underwriting factors such as industry classification, claims frequency, and the presence of high-risk operations (for example, heavy equipment use or frequent transportation) also affect rates. Risk management measures like training programs and safety protocols can help improve terms.
Proof of insurance & compliance
Even when premiums are financed, most contracts and venues require timely proof of insurance. Programs typically issue certificates of insurance or endorsements once the financing is active; however, some certificate holders may require specific wording or additional insured endorsements. Contractors often combine funding with bonding options—see the SBA Surety Bond Guarantee (SBG) Program — Surety One, Inc. for an example of bonding support that may be coordinated with financing.
How to get a quote
To explore whether a funding plan fits your needs, gather your current policy declarations, loss runs, and any contract or certificate requirements. You can also compare program alternatives such as contractor-specific credit options like the Contractor Credit Program which may complement a funding solution. If you prefer to discuss options in person, you can talk to your agent for a customized quote and to confirm documentation requirements.
Risk scenario: a subcontractor wins a short-term project requiring a performance bond and immediate liability coverage—funding can help bridge the initial cost so work can begin on schedule.
Frequently Asked Questions
Can I finance just part of my premium or bond?
Yes. Many programs allow partial financing, but terms depend on the provider and the insured’s eligibility; review contract details before agreeing.
Will financing affect my insurance coverage or claims handling?
No. Financing is separate from the insurance policy. Coverage terms and claims handling remain governed by the policy language and insurer practices.
What documentation will I need to apply?
Common items include the policy declarations page, recent loss runs, identification details for principals, and any contract or certificate language required by a certificate holder.
Still have questions? Talk to a local insurance expert.