Contingent Coverages Available for Equipment (Leases or Loans)

What is Contingent Liability Insurance for equipment?

Lessor's Contingent Liability Insurance will protect lessor or finance company in the event they are named as a defendant in a legal action resulting from a Lessee's involvement in an accident while not maintaining liability insurance as specified in the lease/finance equipment agreement. Defense costs are subject to the policy limit. The coverage limit provided under this program is per occurrence/aggregate.

What is Contingent Physical Damage Insurance for equipment?

Lessor's Contingent Physical Damage Insurance protects lessor or finance company against write-offs that occur in the event that there is a loss to equipment under lease or loan, and the insurance is not collectable or is inadequate to cover the loss. Coverage settlement is set at the lesser of the cost to reasonably restore, the actual cash value, the cost of replacing, or the net pay off of the equipment.

Limit: OPTIONS up to $500,000 per occurrence.

Deductible: Options per claim. (i.e. $2,500 etc.)

Coverage Period:

Lessor's Contingent Liability and Physical Damage policies are written for a one-year policy period. The policy covers losses that occur only during the policy period.

Note: This coverage is available for leased or financed equipment wherein a written lease agreement or finance agreement is executed.