Risk Management for Your Business

When insured value differs from actual value

ERVI (Equipment Residual Value Insurance) helps manage your residual risk

Part of the leasing process includes setting a residual value on equipment. When there is a difference between agreed-upon value and actual value, it can adversely impact your business. For small-, mid- and large-ticket leases and portfolios, ERVI is an ideal method for managing asset value risk as well as achieving favorable accounting compliance methods for your company.

Benefits of ERVI:

• · Helps manage risk due to changing asset value
• · Accelerates earnings recognition and helps achieve favorable
    accounting compliance

When your assets are underinsured or uninsured

C&E: (Contingent and Excess Liability) protects you from legal exposure

If your customer does not have enough insurance to cover the equipment investment or has no insurance, you could be at risk. The damaged party in an accident involving your leased equipmpent may file a lawsuit to hold you responsible. Even in a situation where you clearly have no liability, you have to defend yourself, and legal costs can mount quickly. Deficiency or lack of coverage can leave you at risk.

Benefits of C&E:

• · Covers legal defense costs and high repair or loss payments
• · Protects titled and non-titled assets on a blanket basis
• · Coordinates with your insurance tracking program

When book value is greater than stipulated loss value

SLV Gap covers gap between stipulated loss value and lender’s book value

When leases are purchased, an exposure is created when the book value of the purchased lease is greater than loss value stipulated in the lease agreement and the amount of casualty insurance provided by the lessee. SLV Gap helps you manage exposure when you experience this type of shortfall. SLV Gap applies to a total property loss after the lessee’s casualty insurance policy pays the stipulated loss value.

Benefits of SLV Gap

• · Eliminates exposure to casualty loss due to gap between
    book value and stipulated loss value of acquired lease
• · Offers annual or full-term premium payment options
• · Available to lease buyer or seller as an add-on