Why is There an Insurance Charge on My Bill?
Why is there an insurance charge on my Multi-Function Printer’s lease? It’s a good question with a slightly disappointing answer: all business expenses (equipment) require insurance.
INSURANCE — IT’S WHAT MAKES THE WORLD GO ROUND
Death and taxes may be inevitable, but insurance is necessary. Just like it’s illegal to drive a car without that vehicle being insured, banks won’t lease a piece of office equipment that isn’t insured. It’s like paying for insurance on a rental car — it’s used to protect both you and the rental company.
There really isn’t more to it than that. There is a way to get around paying that insurance to the bank, however:
PROVIDE A PROOF OF INSURANCE
That’s right — if you want to get out of paying that insurance line item on your lease, you’ll need to provide a proof of insurance (POI)… to avoid paying insurance. While it may be recursive, providing this POI can save you some money if your insurance rates with your insurance provider are better than with the bank you’re leasing from. When your lease starts, the leasing company will send notification of the need of the lender. If they don’t receive proof on insurance, they will charge the insurance to your invoice.
In order to receive a POI from your insurance provider, you’ll need to insure your MFP — this process can change depending on the insurance company you are partnered with. Once this POI is in your possession, you’ll be able to send it to the bank providing the lease, and remove this charge from your monthly bill.
ONE WAY OR ANOTHER, YOU’LL BE INSURED
There’s really no getting around it. If you’re leasing a MFP, it will need to be insured — either through the bank leasing the MFP to your business, or through your business’ insurance provider.