Equipment lease insurance protects lessors and lessees from financial losses due to equipment damage or destruction. Consider a construction company renting a crane for a project. Equipment lease insurance would safeguard both the company and the crane owner in case of an accident or equipment malfunction.
This insurance is crucial as it mitigates risks, provides financial stability, and ensures project completion. Historically, it emerged as a response to increasing equipment leasing practices, offering a comprehensive coverage solution for valuable equipment.