Ask Art "Copier Lease Insurance Question"

Received this email from Philip John another Print4Pay Hotel Member ( I actually got him hooked up with Paradgim Imaging for Wide Format Products) in NY:

Hi Art

Hope all is well. I had a question for you about insurance (it could become a blog topic :) )

My client has a 8 copiers on a 60 month lease with insurance coverage from the leasing firm. In month 24, one of the copier was damaged by a flood situation.

Simultaneously they had also closed one division, so technically they now only need 7copiers.

Is it possible that the lease company receive the payment for damage from the insurance company and thereafter adjust the lease to now reflect a lower payment for 7 copiers?

Or does my client have to get a new copier to replace the old one? (assuming at no extra cost to them)

Thanks for your help.

Philip

Hey Philip:

If memory serves me correctly, the lessee (your customer) needs to file a claim with the insurance company that holds the policy on the lease. They will need to contact the leasing company in order to get the contact information.

Now, since no one knows what the policy states we can be assured of one thing, and that is that the leasing company will be paid for thier loss, and the billing of the lossed copier should stop. Your customer needs to get a copy of that policy to dot the i's and cross the t's. I don't beleive that the lessor (your customer) will have to lease another copier if they do not want to

Here's a side note for everyone in reference to insurance on copier leases, this is a profit center for the leasing company! If you can avoid taking their monthly insurance premium and call your BOP (Business Operating Policy) and have the leasing company listed at the "loss payee". In most cases this may not cost you any additional monies since your company would be covered for "x" amount of dollars for equipment. If not, have them add a rider for "x" amount, no doubt it will be less expensive than the leasing companies policy!

Art

-=Good Selling=-