Beneficial owner · interested party · business interruption
Financial lease for business owners
With a finance lease you are the beneficial owner of the machine, the crane or the van: the asset is on your balance sheet, you bear the risk and you take out the own-damage cover yourself.
The calculator and the quote form below are in Dutch. Prefer to do this in English? Email info@finassverzekert. nl or call 072 - 509 24 56 and we will take it from there.
Work out for yourself what it would cost.
Enter your details; you will receive a proposal within one working day.
We compare the offerings of several insurers
An adviser checks whether the cover suits your activities
A premium indication, not personal advice. Prefer to talk it through? Call 072 - 509 24 56.
In brief
Finance lease splits ownership. In law the leasing company remains the owner until the last instalment is paid. In economic terms you are the owner from day one. That means the asset is on your balance sheet, that you depreciate it, and that every risk of damage, theft and downtime lies with you. With an operating lease it is the other way round and the insurance is usually included in the monthly payment.
The lease agreement therefore almost always requires own-damage cover for as long as the contract runs, with the leasing company as interested party on the policy. In the event of a total loss or theft the payment goes first towards the outstanding lease debt. For a machine that carries your production, business interruption cover is often required as well, because downtime hits your repayments directly.
We do not arrange lease contracts themselves. We do assess whether the insurance the contract requires is actually in place and whether it matches what you do with the asset. See also car finance if it concerns a private car.
What does a finance lease cover for business owners?
The structure of the cover in three parts, with an overview per situation below.
In advance
What you need
What a lender asks for.
Income details
Value of the collateral
Overview of obligations
In addition to the interest
What it costs
What is often forgotten.
Advice and arrangement fees
Valuation and notary
Property transfer tax
Conditions
What goes with it
What the lender requires.
Buildings insurance compulsory
Sometimes term life cover
Interested party on the policy
What is covered
Subject
Explanation
Advice is independent
Yes
We compare several providers
Yes
We arrange credit ourselves
No
Referral to a specialist party
Yes
A first conversation without obligation
Yes
Costs clear in advance
Yes
This overview is general in nature and is not personal advice. What is actually covered, including exclusions, limits and the excess, is set out in the policy conditions and the insurance card (verzekeringskaart) of the insurer; you receive both before you take out cover. Taking out cover without advice? Then read what execution only means for you.
Where things go wrong in practice
Four points that make the difference between a policy that pays out and one that does not.
The note must be on the policy before first use
Naming the leasing company as interested party is a short note on the policy, but it determines who the insurer pays after a loss. If it is missing, the lessor has a claim against you while the payment goes to you. That costs weeks and sometimes part of the payment. Arrange the cover on the day of delivery, not on the day the first instalment is debited, and ask the insurer for written confirmation.
Market value versus outstanding balance
Own-damage cover pays on a total loss at market value: what the asset is worth at that moment. Your lease debt follows the repayment schedule and in the first years usually falls more slowly. The difference remains as an outstanding balance while you no longer have a machine. So ask about a purchase price or replacement-as-new arrangement for the first years of the contract, and record whether financed options, bodywork and livery are included in the insured value.
Own-damage cover is rarely the only compulsory cover
If the leased asset travels on the public road, the insurance obligation in Article 2 of the Dutch Motor Insurance Liability Act (WAM) applies to a crane, telehandler or van as well. The registered keeper is responsible for it. If the machine works on a building site, plant and machinery cover with liability for the working risk is needed. And injury to your own employee leads to Article 7:658 of the Dutch Civil Code: your duty of care as an employer is separate from who owns the asset.
What you are not insured for
Own-damage policies on leased equipment have firm exclusions. Damage through operating errors by someone without the required certificate or driving licence is rejected. Damage to the load you carry or lift falls under care, custody and control and is not included in the own-damage cover. Wear, overheating and the consequences of deferred maintenance are excluded, as is theft where the prescribed security or tracking system was not switched on.
What does your premium depend on?
Type of asset and purchase price. A telehandler, a CNC machine and a van each have their own damage pattern and repair costs.
Where the asset is used. Fixed on your own site, moving between building sites or on the public road: that makes a difference to exposure.
Storage outside working hours. A locked shed counts differently from an unguarded building site; plant is stolen mainly at night.
Security and tracking system. An immobiliser, key management and an active track-and-trace system are often acceptance conditions for more expensive equipment.
Operating staff and certification. Permanent, certified operators present a different risk from changing agency workers or subcontractors.
Excess and chosen basis of valuation. A higher excess brings the premium down. A purchase price arrangement for the first years pushes it up.
Insurers weigh these details differently. That is where your saving is.
How we arrange it
You request a quoteWe take stock of your activities, turnover and wishes.
We compareseveral insurers, on premium as well as conditions.
You receive a proposalWith an explanation of the differences and the exclusions.
We arrange the switchIncluding cancellation, so there is no gap in cover.
Customers rate our service on four aspects: personal service, service delivery, availability and the outcome. The reviews are collected and published by NH1816 and come from customers who have actually taken out a policy with Finass Advies B.V. or reported a claim.
With a finance lease, do I have to take out insurance myself?
Yes. You are the beneficial owner and bear the risk, so you take out the own-damage cover and keep it in force for as long as the contract runs. The leasing company is named on the policy as interested party. With an operating lease it is different: there the company remains the owner and the insurance is usually built into the monthly payment.
What happens if the asset is a total loss but the lease debt is higher?
The insurer pays the market value and that goes to the leasing company. If the outstanding debt is higher, that difference remains with you as a residual debt, while you no longer have the asset. A purchase price or replacement-as-new arrangement for the first years of the contract covers that gap; do check from which year that arrangement falls back to market value.
Does the WAM obligation also apply to a leased crane or telehandler?
If the vehicle goes on the public road, Article 2 of the Dutch Motor Insurance Liability Act (WAM) applies regardless of who the legal owner is. The registered keeper must make sure valid liability cover is in place. If the equipment also works as a tool, that working risk is a separate section: damage while lifting or digging is not covered by ordinary WAM cover.
My machine is out of action for two months after a loss. Is that covered?
Only if you have included business interruption or machinery breakdown cover with a downtime section. The own-damage policy pays for repairing the machine, not for the turnover you lose or the work you have to put out. The lease instalments continue in the meantime. For a machine that carries your production, the financier therefore often requires that section itself.
Finass Verzekert is a trading name of Finass Advies B.V. We advise on and arrange non-life insurance on the basis of an objective analysis of several insurers, and receive commission for this from the insurer, which is included in the premium. You pay no separate advice fee. Before you take out cover, we establish your wishes and needs.
You will find our licence, KvK and Kifid details and our complaints procedure at the foot of every page.
