Lease Insurance

The Lease Insurance of Atradius covers the risk of non payment for capital goods that are leased from you and/or the risk of these goods being expropriated during the lease period.

Risks insured

There are three types of lease policies:

• Comprehensive Cover
• Restricted Cover
• Expropriation Risk Cover

Comprehensive Cover

The Comprehensive Cover policy is very similar to credit risk insurance for medium-term transactions, because the policy covers all payments under the lease. This policy is solely for financial lease transactions.

Restricted Cover

A Restricted Cover initially applies to lease rentals that are to be received in the first nine months. If the lessee pays on time, then cover will be rolled over to the next rental. This cover is therefore revolving in nature.

The cover is particularly intended for operational lease transactions, but can also be applied to financial lease transactions, for instance when, according to the country risk policy, Atradius cannot cover the entire term.

Expropriation Risk Cover

With a lease contract you do not only run the risk of non-payment, but also the risk that you are unable to recover the asset that is legally yours. This could either be for reasons of expropriation during the lease period or of export prohibition at the expiry of the lease period. Under a lease policy with Restricted Cover this expropriation risk can be insured separately or in conjunction with non-payment risk.

Foreign Policy Holders

Atradius also insures foreign lessors, provided the leased assets have been manufactured in the Netherlands.