FCIA Nonpayment Coverage On Leases
FCIA’s Single Buyer Medium Term Lease Policies provide coverage with non-cancelable limits to capital equipment lessors and financial institutions against loss on a capital lease with one lessee. Coverage is available on lessee worldwide, and in a variety of forms tailored to meet your specific needs.
- Covers lease of capital goods with one to seven year repayment terms.
- Regular lease payment generally required during the payment term.
- Insured percentage usually is up to 90%.
- Premium is charged on the declining exposure balance and is usually payable in full at policy inception.
- The waiting period to file claim is generally 180 days from date of default.
- The lessee must be the end-user of the product. Dealers/Distributors are usually not eligible lessees.
- Operating leases are not eligible.
Who Should Apply?
Our target customers are companies and manufacturers that have at least $1 million in insurable domestic or international lease obligation. Our minimum premium is $20,000 and payable at policy inception.