Who Insures a Leased Printer, and What They Insure

The distinction that catches people out

Service cover deals with the machine breaking down through use: parts wearing out, faults developing, consumables running down.

Insurance deals with the machine being damaged or lost through something external: fire, flood, theft, or an accident.

The monthly fee covers the first. It does not cover the second.

The two are often confused because both feel like "the machine is looked after", right up until the office floods.

Four obligations the agreement puts on you

• Insure the equipment for its full replacement value for the whole term.
• Note the finance company on the policy as an interested party or noted party, so any claim payment reaches the right place.
• Keep the cover in place until the equipment is returned or bought out, not just until the last payment.
• Provide a certificate of currency on request.

Where the cover usually comes from

Most businesses already hold a business pack or office contents policy that can be extended to cover leased equipment.

Adding a specified item to an existing policy is normally cheaper than a standalone policy for one machine.

Tell your broker the equipment is financed and that the financier needs noting, because a policy in the wrong name creates problems at claim time.

This page is general information about how these agreements are generally written in Australia, not insurance advice. Check your own policy and your own lease.

After a claim is made

If the device is repairable, the claim covers the repair and the agreement continues.

Where it is written off, the insurance payment normally goes toward settling the finance, and any shortfall sits with the customer.

That shortfall is the reason full replacement value matters. Insuring for a lower figure leaves a gap that only appears when you claim.

Fair wear and tear, meaning the marks expected from normal office use, is not an insurance matter. It is dealt with at the end of the term.