Rest Easy Knowing Your Equipment is Covered
When you lease equipment for your business do you think about what insurance you will use? Scott Lynch discusses the importance of insuring your equipment and how to go about finding the right one for your business.
Equipment that is financed will require insurance just like a car that is financed. You can either go through a 3rd a party insurer or your financier might be able to offer competitive rates. If you already have insurance for the equipment you will lease be sure to provide the proper documentation to your financier for proof.
Not only do you need insurance in order to lease equipment but you should want it. It’s tough taking money out of your budget to protecting against something that may never happen. However, having insurance allows you to rest easy knowing your equipment is covered. Imagine being stressed out 24/7 worrying about if something happens to your equipment. Expect the best, but prepare for the worst.
While shopping for insurance it’s important to know things like how long you are going to use it, how soon the newest version of the equipment is going to be released, and if you might want to own the machine at the end of your lease. Although those are just a few, you must understand there are many options. Your insurance should correspond with your lease, regarding time frame and what kind of equipment you’re dealing with.
Knowing Your Lease:
A short-term operating lease might be your best bet if you plan on giving the machine back, essentially using it for a job and then being done with it. Let’s say you’re a construction company that wants to lease a crane, your company doesn’t often use one but you have a certain job that requires one. You don’t want to use up your companies capital on paying for the full value of this crane if you are going to use it once.
A long-term capital lease might deal with a restaurant for example, they receive a loan knowing that piece of equipment is going to be there for a long time if not forever, like a grill. This should affect the way you shop for your insurance, thinking about higher possibilities of problems as time goes on. Consider using the grill for 4 years versus that same grill for only one, inevitably you are going to put more wear and tear on the grill.
Different types of equipment that you may lease or finance and would require insurance:
– Construction Equipment
– Restaurant Equipment
– Commercial Vehicles
– Computer Equipment
– Fitness Equipment
– Printing Equipment
– Medical Equipment
– Machine Tools
– Auto Shop Equipment
– Sign Making Equipment
If you are ready to lease or finance equipment for your business, then we can help. Direct Capital has provided small business financing to more than 80,000 businesses across the nation. Visit our website to see our financing options.