Contingent Liability Insurance
What is Lessors Contingent Liability?
It is an important insurance product that protects the lessor (the owner of the car) in third-party liability claims. Coverage applies if the lessee’s insurance is not in force, lapsed or underinsured than what is required by the lease agreement at the time of an accident.
Who needs this coverage?
Are you a dealer who leases or rents vehicles to prospective buyers? If the answer is yes, then you have some exposure and are a likely candidate for this product. As the legal owner of the vehicle you may be named in a lawsuit if the lessee is involved in an accident that causes damage or injury.
- Liability limits of $100,000 per person, $300,000 per occurrence Bodily Injury, and $50,000 per occurrence Property Damage.
- Physical damage deductibles of $1,000 are available for both comprehensive and collision. $30,000 maximum payment per loss is applicable. Higher limits are available upon request.
- This coverage protects the lessor in the event that he/she is named as a defendant due to an accident involving the lessee. Contingent liability must be purchased in order to have this Excess Liability.
- Due diligence is required by the lessor in obtaining and maintaining evidence of automobile physical damage and liability insurance form the lessee according to the lease agreement.
Benefits to Your Leasing Company
- Legal defense costs under Contingent Liability is fully provided
- As owner of the vehicle, you can operate with peace of mind even though the lessee has obtained their own insurance.
- Insurance becomes uncollectable as long as the lessor is using reasonable means to recover the car. Coverage does not automatically terminate after 30 days after cancellation of the underlying insurance.
- Contingent Liability coverage remains in effect for an indefinite period of time after the underlying insurance.
Are you sure you’re covered?
We at Preferred Dealer Group are well versed in the exposures that leasing dealerships face.
We will provide you with a free analysis to make sure you and your assets are fully protected.
Get a Free Quote
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111 Corporate Drive #200, Ladera Ranch, CA 92694
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