Anytime you have an investment that reaches thousands of dollars, there is usually cause for insurance. The idea behind insurance coverage is to make sure that in case of any unforeseen circumstance like a fire or damaging storm, your listed assets can be protected monetarily. Office equipment such as printers and copiers are no different. There are a few different situations you should be aware of when figuring out how to insure your equipment.
What If I Lease?
Many businesses take advantage of leasing their office equipment to avoid large upfront investments and instead have monthly payments. While leasing companies hold ownership of the leased equipment, they still require that the devices be covered by the leasee with an insurance policy. The process for obtaining coverage for your equipment is simple and rarely requires an additional policy or cost. Businesses must have property and liability insurance and add the leased equipment to the policy with the leasing company listed as the loss payee and additional insured. If something were to happen to your equipment, the leasing company would receive any compensation for damages since they are the designated owner and loss payee.
Leasing companies often require a proof of insurance no later than 30 days after the inception of the lease before they begin billing you for insurance. The leasing company will execute an insurance policy for the equipment and include administrative fees if the obligation is not met by the company leasing from them (leasee). Insurance options are pretty much always going to be more expensive through a leasing company, and as I mentioned before, usually unnecessary since property and liability insurance are held by most companies. We recently partnered with a church that under a different vendor was paying over $40 a month to the leasing company for insurance they already had. In the span of a 5 year lease, that would equate to $2,400 in unnecessary spending.
What If I Own My Equipment?
When you own your copiers and printers you do not have to put them under any type of insurance. Unlike the mandate from leasing companies to have their equipment covered, you are free to do as you wish with your owned equipment. Though it is often a free or low cost action that can provide you with peace of mind that your investment is protected. You would simply need to add any equipment to your business insurance but unlike the leasing scenario, you would be the loss payee. Additionally, you will need to provide the insurance company with some documents indicating the value of the devices you are wanting covered.
To determine whether your existing business insurance policy will go up by adding your equipment, whether leased or owned, you will need to know the amount of coverage you have on the policy and the value of the equipment. Additionally, you will need to know how much you currently have covered under the policy and the difference in coverage and value of covered assets. For example, if you have a policy covering $500,000 and you have $450,000 in assets, as long as the equipment you are adding doesn’t exceed $50,000 you should not have any increases in premiums. Though, if you need to add to the policy amount to cover the additional assets, there would be some sort of increase in your cost. While the majority of businesses rarely ever have to use their insurance to replace or repair their office equipment, hurricanes, pipe leaks, fires and other unmitigated circumstances do happen. Protecting your assets is always a good idea, just as long as you understand what you are spending and why.
Are you paying your leasing company for insurance you don’t need or unsure if that is the case? If so, we would love to help you navigate a plan that makes sense for your business. Give us a call at 800-648-7081 or visit us online to set up an appointment with one of our local representatives.
Drew Smith currently serves as Director of Communications for Copiers Plus. The company specializes in modernizing office equipment and increasing efficiencies in workplace communications throughout the state of North Carolina. To learn more about how Copiers Plus is providing their customers with innovative document solutions and enhanced printing transparency, visit www.copiers-plus.com. Drew would love to hear from you at [email protected].
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