Equipment Finance Insights
FAQs about Equipment Finance & Insurance
September 7th, 2017
With the help of our Insurance Manager, Marilyn Hankerson, we’ve put together a basic insurance overview of what your customers can expect after purchasing equipment with financing.
Just like an auto loan or lease, equipment being financed through a lender (First Western Equipment Finance) must carry insurance. Oftentimes, businesses and other organizations have policies that cover the entire company and its assets, in case there is an unexpected event that causes the equipment to be damaged, or lost.
During our 42 years of providing financing across the United States, the First Western Equipment Finance team has witnessed events from customers losing everything in a fire, to having equipment being stolen off-the-street, right behind their back. We want to make sure our customers are protected, so we can help them replace equipment lost after an unfortunate situation.
Most of the time, the customer simply needs to contact their insurance agent and provide the serial numbers, models and cost of the equipment that was recently purchased. Their agent will update the policy accordingly, and send the proper documents to the lender.
The basic documents and information a customer will provide include:
- Insurance agents have to send a certificate of insurance (or an Acord form), to the lender.
- The lender’s business name must be on the insurance documents (ex: First Western Bank & Trust, DBA: First Western Equipment Finance).
- The contract (agreement) number, equipment cost, expiration dates of the policy, the policy number, and the carrier.
Once these documents are submitted, the lender will typically follow-up with the insurance agency to obtain any additional information. The customer must make the initial call to the agent, to add the equipment to the policy.
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