Business Personal Property ????

Lender-placed business personal property (BPP) insurance may help lenders insure their financial interests in the equipment securing their loans. We offer this insurance in our home state of California, Texas, and any other state across the US.

Who needs it?

Any lender that underwrites commercial loans with equipment or UCC filings as security may need lender-placed BPP coverage in the event their borrower fails to obtain the proper coverage.

What is lender-placed business personal property insurance?

Businesses that finance or lease equipment are generally required to insure that equipment against damage or loss, but not all businesses carry the minimum required amount of coverage. When a business fails to maintain sufficient coverage, lender placed business personal property insurance may help lenders – both in Texas and beyond – insure their financial investments in the equipment.

Lender-placed BPP insurance fills in gaps when the borrower doesn’t carry the required minimum coverage on financed equipment. Lenders should work closely with an insurance agent, like QuieTrack, who specializes in this type of force-placed coverage.

What type of equipment does Lender Placed BPP cover?

This coverage is available for equipment, office supplies, furniture, and other personal effects or equipment. Standard exclusions include goods-for-sale and product inventory. Mobile equipment, such as tractors, automobiles, and other agricultural equipment, is typically covered under the vehicle CPI policy.

Can a lender outside of California work with QuieTrack to obtain lender placed business personal property insurance?

Yes, we specialize in lender-placed insurance for lenders across the United States and are well-versed in BPP solutions. We’ll work closely with you to find a policy that suits your situation, so you can have confidence that financed equipment is still protected even if a business has let their coverage lapse.

What perils does lender placed BPP cover?

Lender placed BPP coverage is an all-risk coverage. The primary role of lender placed business personal property is to protect a lender’s financial investment in the equipment collateral, and the provided coverage is typically limited to the lender’s interest or loan balance.

Additionally, BPP insurance does not provide any type or level of liability protection for businesses. However, QuieTrack can track any type of liability insurance for lender’s to ensure their loan requirements are met. This provides greater visibility and mitigates uninsured collateral and business risks.

When can lenders purchase lender placed business personal property coverage?

Lenders usually can place business personal property coverage on the day that a business’ equipment coverage expires, cancels, or becomes insufficient.

Once sufficient equipment coverage has been restored by the borrower, any LPI BPP policy that had been purchased may be canceled. and the unearned premium is refunded.

Who pays for lender placed business personal property coverage?

Although the protections that lender-placed business personal property coverage benefit the lender, the premiums are paid by the business that finances the equipment. In most cases, this is because the business has agreed to maintain minimum levels of coverage and failed to do so.

The premiums are often added to the monthly loan or lease payment and increased to amortize the LPI premium.

How can a lender get business personal property coverage?

For help finding business personal property coverage, contact us at 800-743-3898 or check out our website at https://www.quietrack.com/business-personal-property/ . We'll make sure you find effective coverage for business personal property. #QuieTrack #Insurancetracking #business #personal #property #protection #lender