What is the definition of Operating Expenses?

Operating Expenses refer to the costs incurred when running a business. This includes rental or building maintenance costs, as well as utilities (power, water, gas), property taxes, insurance, and depreciation.

Operating expenses refer to day-to-day expenses that a business needs during its operations, as opposed to Capital Expenses, which refer to the cost of developing or producing a product, as well as providing non-consumable equipment and parts.

Other operating expenses that an insurance company may have will be: advertising expense, property management, accounting expenses, license fees, office expenses and supplies, attorney and legal fees, worker's wages and salaries, as well as transportation expenses.

• Insolvency
• Misstatement of Age or Sex Provision
• Modified Premium Policies
• Moral Hazard
• Comprehensive Coverage