What does Administrative Expenses mean? Read on to discover the definition & meaning of the term Administrative Expenses - to help you better understand the language used in insurance policies.
Administrative expenses are expenses not involved with producing or selling that a business incurs. Instead, they are costs of tasks a business needs to undertake to continue operations. In the context of insurance, insurance companies commonly have a number of administrative expenses, such as rent, utilities, certain salaries, and anything else not directly involved with underwriting or marketing.
We hope the you have a better understanding of the meaning of Administrative Expenses.