Script from the Crypt - A Scary, Wary Tip from our Business Hub Script11th November 2013
In the part time finance director role we fulfill for clients we frequently unearth ghoulish hidden costs that send shivers down our spines!
In a recent scary wary tip from Garry’s Business Hub Script he highlighted hidden insurance costs that are often found in Operating Leases for things such as photocopiers and office equipment.
The equipment is effectively rented to you, and as the owner (the leasing company) has no control over the equipment at your premises, they need to ensure the goods are insured.
To do this they add a clause to the lease agreement stating it must be insured by you. However, this can be missed by the Lessor as it’s hidden away in the small print. So, to overcome that, they add a further clause saying they will charge you for their own equipment insurance unless you prove to them in writing within say 30 days that the equipment is already insured (and verified by the insurer).
Whilst we agree that their equipment should be insured, the policies they impose are often very costly, and since the payments are taken by direct debit they often slip through unchallenged.
Are you paying twice to ensure your equipment? We'd like to hear your views.
You can listen to the audio podcast and access the full script from the link to our business hub page.