Frequently Asked Questions

As you are aware, one of the terms of your agreement requires that you maintain insurance against loss, damage and theft of the equipment. You can satisfy this requirement by obtaining your own insurance or by taking advantage of the coverage offered by Meridian OneCap Credit Corp

Benefits

Insurance coverage automatically added to your equipment lease means no 3rd party payments.

Quick Facts:

The benefits that many of our customers enjoy by insuring the equipment under our policy include:

  • It’s automatic, it’s convenient – you don’t have to do anything.
  • Zero deductible for losses exceeding $100; losses of $100 or less will not be covered.
  • It protects covered equipment against physical loss caused by fire, burglary, theft, accidental damage, vandalism, employee theft, power surge and flood.
  • Insurance charges, consisting of insurance premiums, fees for tracking the insurance and administration fees are spread out over the term of the agreement and do not rise with each claim. The total amount is added to each of your invoices or preauthorized payments.

If our policy is used to provide coverage on the equipment and your agent or broker subsequently provides the Insurance Tracking Centre with verification of your own insurance that meets the requirements of the agreement, our coverage will be cancelled on the effective date of your own insurance.

Coverage

Comprehensive coverage that goes beyond many business insurance policies.

Quick Facts:

Our property insurance policy provides coverage for several important types of losses that many business insurance policies exclude, such as power surge, employee theft and flood. There is no deductible on covered losses greater than $100. Ask your agent or broker if your business policy covers these types of losses, or if you would have to pay for them.

Our policy protects covered equipment against losses due to:

  • Burglary
  • Power surge
  • Theft
  • Accidental damage
  • Fire
  • Vandalism
  • Lightning
  • Wind and hurricane
  • Flood and water
  • Employee theft*

as well as transit, robbery, electrical disturbances, hail, smoke, volcanic action, falling objects and collapse.

*There is no coverage for theft by a shareholder, director, owner or partner.

Meridian OneCap Credit Corp is the only insured under this policy. Your company is not an insured, an additional insured, or a loss payee under this policy.

Exclusions

Coverage excludes certain equipment types and events.

Quick Facts:

Equipment not covered:

  • Equipment which is waterborne.
  • Aircraft or water craft, including their motors, equipment and accessories.
  • Automobiles, trucks, or any self-propelled vehicles or machines primarily designed and licensed for road use.
  • Trailers or semi-trailers, unless the trailer is part of a single work unit and is intended primarily to provide mobility to the main item of equipment; and both the trailer and the main item of equipment are covered under one agreement.
  • Equipment used in mining, logging, lumbering, or oil or gas explorations or processing.
  • Underground equipment or equipment while located underground.

Exclusions:

  • Loss of market, business interruption, or any other indirect loss.
  • Internal causes of loss, such as mechanical breakdown, processing operations of computer equipment, or maintenance.
  • Earthquake or earth movement.
  • Rust, corrosion, marring or scratching.
  • Shortage of equipment which is discovered when taking inventory.
  • Abandonment.
  • Dishonest or criminal acts (including misappropriation, conversion, and skip) by shareholders, directors, owners, or partners.
  • War, government action, nuclear reaction, radiation, or radioactive contamination.
  • Contaminants or pollutants.

Claims

In the event of a loss, report it immediately.

Quick Facts:

If there is a loss on the equipment covered under our policy, simply call 1 (866) 223-6381 to report the loss to the Insurance Tracking Centre.

Settlement of Covered Losses

The insurance company settles covered losses in the event of damage of loss due to a covered cause of loss, using one of the following methods:

  • Repair of the covered equipment, when repairable; or

  • replacement of the covered equipment, when the equipment was new equipment at the time of the lease or finance agreement and is not repairable and is replaced under the same agreement. When the equipment is replaced, the loss is valued on a full “replacement cost” basis; or

  • payment to us for the stipulated loss value of the covered equipment at the time of loss, if the covered equipment is totally destroyed or lost and we choose not to replace it under your agreement; or if the covered equipment was used equipment at the time of the lease of finance agreement. The insurance company will pay for loss to equipment covered under our policy resulting from covered causes of loss only while the covered equipment is located within Canada and the United States of America (including its’ territories and possessions).

Definitions

Key terminology related to leasing insurance.

Accidental Damage: A sudden and unexpected event that is not specifically excluded, which results in damage to covered equipment. For example, accidentally dropping covered equipment or spilling a liquid on covered equipment.

Burglary: The use of force or violence to break into or out of premises which are not open, evidenced by marks of forcible entry or exit, and illegally taking away covered equipment.

Conversion: Unauthorized transfer, or attempted transfer, of ownership of covered equipment to another party.

Flood: Waves; or the rising, overflowing, or breaking of boundaries of lakes, ponds, reservoirs, rivers, harbors, streams, and similar bodies of water; or spray from any of these – all whether drive by wind or not.

Insured: Meridian OneCap Credit Corp

Power Surge: Electrical currents, originating from outside the covered equipment, that damage covered equipment, including power interruption, power surge, reduced voltage, and brownout.

Replacement Cost: The cost to replace covered equipment with the same kind and quality equipment at the time of loss.

Theft: Any act of stealing or illegal taking of covered equipment.

The information found on this website is general and should not be considered a complete analysis of any coverage on equipment under our policy. The actual terms, conditions and exclusions in our policy will prevail over the information on this website.