Why Do I Need Insurance on a Copier Lease

Did you sign up for a copier lease, and when you got your first bill you are seeing charges you are not expecting? One of the common charges is insurance charges.

We have helped companies get copier leases for over a decade and want to help you avoid any unnecessary expenses.

In this article, we will talk about one of the charges we have seen clients protest and be frustrated by, and how you can avoid this fee.

Why Is It Required?

If you are curious why insurance is required, you have to understand what the lease is. A copier lease isn’t just borrowing a machine from a company. A copier lease is a financial agreement, which a bank is normally financing. Because a bank is financing the transaction, the point of insurance is to protect the asset they are financing.

If you understand a copier is a financial agreement, it is common for some of the copiers to cost $10,000 or more (about $200 per month), and this needs to be protected. If your building has a flood or fire, the bank wants to be sure they get their money.

How Much is It?

Insurance normally isn’t brutal, but it is generally about $10 to $25 a month for insurance. If your bill is $150 and the insurance is $20, it can feel like a bait and switch when you see the bill for $170 rather than the expected $150.

What Can You Do?

The easiest thing you can do is get a document from your insurance company saying the device is covered in case of fire, flood, etc. This document is something you will need to provide to the leasing company. When they get this document, they are generally willing to remove the insurance charge from your bill.

What you will want to do is get the document prepared before you even sign your next lease so that can be entered at the same time, to avoid an unnecessary charge. After all, you are already paying for insurance for your company, why pay for insurance and then pay additional to insure the copier?

If you would like to lease a copier, give us a call or fill out our forms. We give helpful advice like this to help you keep your costs as low as possible.

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