There are many reasons why equipment finance companies choose to work with a lease insurance provider. It enables them to relieve their teams from pursuing insurance documentation, ensure their portfolios are protected and earn reliable fee income. However, not all lease insurance providers offer the same level of support and service. Here are 10 important things to look for when selecting a lease insurance provider:
1. Comprehensive insurance tracking.
Comprehensive tracking ensures your lessees have the required coverage and your portfolio is fully protected. Some lease insurance providers offer convenient 24/7 online access to images of proof of insurance that your team can view whenever needed.
2. Meticulous monitoring of insurance expiration or cancellation.
Be sure your lease insurance provider monitors throughout the lease term and has the ability to provide backup insurance coverage when needed.
3. Proactive, customer-focused communications.
Your lease insurance provider should offer multiple opportunities for lessees to provide proof of insurance vs. “forced placed” insurance. Make sure your lease insurance provider treats your customers with the same consideration you do.
4. An emphasis on ensuring your lessees have the appropriate required coverage.
The objective should not be charging your customers for insurance they do not need.
5. Liability coverage for leased commercial vehicles.
If you lease commercial vehicles it is important that your lease insurance company provides liability insurance to protect you from any claims by third parties arising from your lessees’ use of the leased vehicles.
6. No upfront charges.
Coverage should be in place and your portfolio protected before you make payments. You should only remit insurance charges after they have been collected and reported by your lease accounting system.
7. Comprehensive, affordable coverage for your lessees.
Superior coverage leads to high voluntary acceptance rates. More lessees enrolled in the lease insurance program means more fee income for you.
8. Responsive customer service.
Look for a team experienced in handling all types of losses, and swift claims processing to get your customers back in business as soon as possible.
9. Seamless reconciliation.
Any payments made to the insurer are based upon payments received from your lessees.
10. Detailed reporting.
You should receive updates on acceptance rates and income on a monthly basis.
If you are interested in learning more about implementing a lease insurance program, we’re here to help; please contact us.