Who is responsible for the insurance and maintenance of the equipment?
A – The lessee is responsible for full insurance coverage over the course of the lease term and must produce evidence to that effect prior to the funding of a transaction. Maintenance of the equipment is also the responsibility of the customer unless specifically provided by the vendor selling the equipment. The equipment is expected to be kept in good working order throughout the term of the lease.
The Lessee/end user is responsible for maintaining the equipment and providing the proper insurance. The lessee is responsible for insuring the equipment against risk of loss including property and casualty coverage and liability. Lessees typically just add the equipment to their existing policy, however, insurance may also be available through the lessor.
