Why do I need insurance on my leased or financed equipment?
Insurance is required by your agreement to protect the equipment and the leasing or finance company from losses during the term of the agreement. It’s important to you and your business, too. If the equipment you lease or finance is stolen or damaged, insurance can replace or repair it promptly, so you do not lose the use of that equipment and can continue operations with minimal interruption.
What are the insurance requirements?
Your lease or finance agreement requires you to have “special form” property coverage, which includes coverage for theft and accidental damage. If you have a lease agreement, you also may be required to have liability coverage. The lessor or finance company and its assignors and assignees must be named as “loss payee” on the property insurance and, when applicable, “additional insured” on the liability insurance.
What determines the Insurance Charge?
The Insurance Charge is based on the value and type of equipment you are leasing or financing, the term of your agreement, and whether you have a lease, which requires liability coverage, or a finance agreement, which does not require liability coverage. Please refer to calculate insurance charge for estimated Insurance Charges on various types of equipment.
How can I obtain ALI coverage?
Though it protects the equipment you lease or finance, the ALI Program is an integrated program of insurance and service provided to lessors and finance companies. If you choose a lessor or finance company we service, ALI coverage will automatically apply to your agreement, provided your equipment qualifies. See what’s not covered for exclusions.
How do I submit a claim?
The process is simple. Call our toll-free claims processing number, (888) 521-6568, to give us details of the loss. If the loss is due to fire or theft, you will need to provide us with a report from the fire or police department. In addition, a written statement of loss is required for all claims. See to file a claim for further information.
How long will it take to settle my claim?
ALI strives to replace equipment—or pay off the balance due to the leasing or finance company in cases of total loss—within days of the completed claim submittal. In cases of partial loss, repairs are usually authorized within days of repair estimates and proper loss documentation.
Why do I have to name my lessor or finance company as “loss payee?”
Because your lessor or finance company has a financial interest in the equipment, naming the lessor or finance compnay as “loss payee” means that, (1) insurance proceeds will be paid to the lessor in the event of a loss, and (2) the lessor or finance company will be notified by the insurance company in the event that your other coverage is cancelled or not renewed.
Other questions? Contact customer service.