Equipment finance insurance cost refers to the cost of insuring a loan taken out to purchase or lease business equipment. For instance, a small business owner might insure a loan for new office furniture and equipment.
This insurance is important because it protects the lender in the event that the borrower defaults on the loan. It also benefits the borrower by giving them peace of mind, knowing that their business assets are protected in the event of a covered loss. Historically, equipment finance insurance costs have been on the rise due to increases in fraud and the cost of repairs.