ALI insight logo

Eight key benefits of a good lease insurance program.

May 19th, 2020

A well-run lease insurance program provides significant advantages to leasing and finance companies, as well as their customers. Let’s look at the needs of leasing and finance companies first. If you lease or finance equipment or vehicles, a professionally designed and managed lease insurance program will allow you to:

  1. Protect your assets.

    A lease insurance program provides complete portfolio protection, by covering every agreement that is not adequately covered by alternate insurance. Yes, all of them.

  2. Shield your company from liability claims.

    Lease insurance is specifically designed to address the needs and potential exposure of lessors. If you lease equipment or vehicles, the insurance coverage will also provide protection from liability claims by third parties arising from use of the leased equipment.

  3. Forget about insurance documentation.

    How much valuable time does your team spend pursuing evidence of coverage? With a well-run lease insurance program, you can forget about it – and your team can focus on more profitable activities. Verifying coverage is the responsibility of the program manager.

  4. Streamline funding.

    A lease insurance program provides coverage on each and every agreement from inception. Evidence of sufficient coverage is no longer necessary to close a deal. Less paperwork and fewer hurdles mean more completed transactions.

  5. Stop worrying about coverage.

    The standard business owner’s insurance policy is renewed yearly. Unless it isn’t. With a professional lease insurance program, expired or cancelled coverage is no longer a concern. Each agreement in your portfolio is protected from origination to conclusion. If a customer opts to obtain insurance elsewhere and it cancels or expires, program coverage goes into effect. Your portfolio is protected. Period.

  6. Provide added value to your customers.

    With lease insurance, your customers don’t have to concern themselves with obtaining insurance before getting financing. A lease insurance program is convenient, and affordable. An effective lease insurance program offers rates that are competitive, with better coverage than they can get through standard business owner policies. It’s an easy way for them to satisfy the insurance requirements of their contracts.

  7. Help customers stay customers.

    Instead of the typical business owner policy’s “actual cash value” coverage, which deducts for depreciation, lease insurance provides true replacement cost coverage. A well-run lease insurance program also offers responsive claims management. That means if customers experience a loss, their equipment or vehicle is repaired or replaced promptly, so they can continue in business. That’s important to both of you.

  8. Generate fee income.

    Insurance charges are billed on your regular lease or finance invoices, through automated data exchanges. You’ll receive a monthly administration fee for each agreement enrolled in the lease insurance program.
    A professionally managed lease insurance program provides multiple benefits that help your organization to conduct business more efficiently and focus on future growth. Interested in learning more? Please contact us.