The Insurance Required for Equipment Leases
When a business leases equipment, insurance is often required to cover any damage or loss that happens to the equipment. Get fairly affordable rates on leasing insurance for business equipment with help from a financial adviser and insurance broker in this free video on insurance.
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This is John Pinelli, financial representative, talking to you today about the insurance required for equipment leases. So during the leasing process of equipment, whether it be printers for your office or machinery for your construction business or autos for your pizza delivery business. It's important when leasing these vehicles -- this property -- that you have some insurance on the actual property that you're leasing. In fact, most companies will not provide you with the lease unless you have some sort of proof of insurability for the equipment. The reason that the leasing companies require you to have insurance on their equipment is because you're not able to afford the full cost of that equipment. Should that equipment become damaged, stolen, et cetera, the lease company's going to need to obtain their full money back for that equipment, and you don't want to be on the line for the cost of expensive machinery and equipment as well. So it's important both on your end and on our...and on their end to have some sort of equipment leasing insurance. Now, the insurance can typically be obtained through most insurance companies. A lot of insurance companies who do work on the property side will provide you with some insurance at a fairly affordable rate if you intend to lease some equipment. Companies like State Farm, Farmer's, whatever agent that you're typically working with for your other insurance needs will also be able to help you with your equipment leasing insurance needs as well. So it's important that you contact an agent. At least receive some sort of quotes, possible...potential coverages that you would obtain when applying for the lease to lease the equipment.