Contingent Physical Damage protects the lessor or lending institution in the event that the lessee’s primary physical damage insurance is cancelled or is inadequate to cover the lessor’s loss. CPD is available for both equipment and automobiles.

Structure

The lessor requires insurance protection as part of the lease contract. The lessor may or may not have an insurance tracking system in place. If at the time of loss, the lessee is either uninsured or underinsured the lessor will have protection from financial loss due to damage or theft of its leased equipment.

Features

• Provides physical damage insurance only; does not provide liability coverage
• Coverage limits are the least of the cost of repair, actual cash value, and the net payoff of the lease
• If the equipment value is greater than the lease balance and the equipment is a total loss, CPD covers the net payoff of the lease
• Coverage is "single interest," meaning only the lessor may file a claim. Payment default and repossession are conditions for a covered loss and CPD is excess of all other insurance available.
• Coverage is generally written on a monthly reporting form or for an annual period

Contingent & Excess Liability Insurance for Equipment Lessors protects lessors from liability exposure to bodily injury or property damage caused by leased equipment.

Lessor's Contingent Liability:

If a lessee is uninsured, your company will have protection if named as a defendant in a legal action resulting from an accident involving your equipment.

Lessor's Only Excess Liability:

If a lessee is underinsured, this policy will protect your interest above a lessee's primary liability insurance policy or above your company's contingent liability policy.

Features/Benefits

• Single interest policy that includes coverage for defense costs
• Claims are handled by an experienced claims staff

Eligible Asset/Customer Class

• Commercial Equipment Lessors
• Equipment portfolios