Insurance is required by your agreement to protect the equipment and the leasing or financing company from losses during the term of the lease. It’s important to you and your business, too. If equipment or a vehicle you lease is stolen or damaged, insurance can repair or replace it promptly, so you do not lose the use of it, and can continue operations with minimal interruption.
If you lease or finance equipment, your agreement requires you to have “special form” property coverage, which includes coverage for theft and accidental damage. If you lease or finance vehicles, your agreement requires you to have physical damage coverage. If you have a lease agreement, you are also required to have liability coverage to protect the owner. 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.
The insurance charge is based on the value and type of equipment or vehicle you are leasing or financing, the term of your agreement, and whether you are leasing or financing. Request an insurance charge estimate.
The process is simple. Call our toll-free claims processing number, 888-521-6568, to give us details of the loss. A written statement of loss is required for all claims. If the loss is due to fire or theft, you will need to provide us a report from the fire or police department. For more information see how to file a claim.
In cases of total loss, ALI strives to replace equipment or vehicle (or to pay off the balance due to the lease or finance company) within days of the completed claim submittal. In cases of partial loss, repairs are usually authorized within days of proper loss documentation and repair estimate receipt.
Because your leasing or financing company has a financial interest in the equipment or vehicle, naming the leasing or financing company loss payee means that (1) insurance proceeds will be paid to the leasing or financing company in the event of a loss, and (2) the leasing or financing company will be notified in the event coverage is cancelled or not renewed.
Other questions? Contact us.