Important Terms

Cause of loss:  any occurrence that causes loss or damage to covered equipment.

Covered equipment: eligible leased or financed equipment, vehicles or trailers insured under a policy issued to the leasing or financing company.

Customer: a person, corporation, company or other legal entity that has entered into a written agreement with the insured leasing or financing company for the leasing or financing of equipment.

Loss: theft, damage, or destruction of covered equipment.

Occurrence: any accident, loss, or disaster, or series of accidents, losses, or disasters arising out of one event.

Replacement cost: the cost to replace covered equipment with equipment similar in kind and quality to the equipment at the time of loss with no deduction for depreciation.

Stipulated loss value: the financing/leasing company’s net investment in covered equipment at the time of a loss, as shown in a table or chart of net payoff amounts; in no event will this amount exceed the original cost of the covered equipment or the limits of coverage.