Frequently asked questions.

How do I know if my customers can use the American Lease Insurance Program?

Check with your funder. American Lease Insurance (ALI) is an automated program of insurance coverage and tracking that is offered through leasing and finance companies of equipment and commercial vehicles.

Do I still need to obtain insurance documentation?

No. If your funder offers the American Lease Insurance Program, you do not have to obtain evidence of coverage prior to funding – or at all. ALI covers each and every agreement on covered equipment from inception through termination. There are exclusions. The ALI Program does not cover equipment used in logging or lumbering, underground mining, oil or gas exploration, greenhouses, or the billboard or cannabis industries.

What if my customer wants to use his or her own insurance?

If customers wish to arrange their own coverage, they need to provide sufficient evidence (an ACORD 23, or its equivalent) of “special form” property coverage, which includes coverage for theft and accidental damage. For leased or financed vehicles, physical damage coverage is required. Leased equipment also requires liability coverage. The leasing or financing company and its assignors and assignees must be named as “loss payee” on the property or physical damage coverage, and, when applicable, “additional insured” on the liability insurance. Evidence of sufficient coverage should be faxed to 888-228-8430 or emailed to

What kind of coverage does ALI provide?

ALI provides replacement cost coverage, which is better than the actual cash value coverage (replacement cost minus depreciation) available through a typical business owner policy (BOP). ALI coverage also includes additional causes of loss, such as illegal taking, flood and power surge, not standard with BOP. On vehicles, in the case of a total loss, ALI covers the lease or financing company’s net payoff amount. See what’s covered for equipment and what’s covered for vehicles.

Is the cost of ALI coverage competitive?

ALI coverage is affordable, with an insurance charge that won’t increase year after year. And there’s no deductible, unlike standard business owner policies, which typically have deductibles of $500 or more.

What determines the insurance charge?

Insurance charges are based on the value and type of equipment or vehicle leased or financed, the term of the agreement, and whether it is a lease or finance agreement. You can help your customer compare costs by requesting an insurance charge estimate.

Is the ALI Program easy for customers to use?

Yes. Convenience is one of the benefits of the ALI Program customers enjoy. Insurance charges are billed right on lease or finance invoices, or electronically transferred along with lease or insurance charges, so there’s no additional payment to make. Customer service is responsive, and it’s simple to submit a claim. Your customers are reassured knowing they can continue operating should they experience a loss.

Other questions?

We’ll be happy to help. Please contact

Important terms.