What it does
BP 04 16 names the lessor shown in the Schedule as an additional insured, but only for bodily injury, property damage or personal and advertising injury caused, in whole or in part, by the named insured's maintenance, operation or use of equipment leased from that lessor. Coverage does not apply to occurrences after the equipment lease expires. ISO lists both a scheduled version and an automatic version (Lessor of Leased Equipment – Automatic Status When Required in Lease Agreement With You) in the BOP program.
Who needs it
Restaurants leasing kitchen equipment, offices leasing copiers and phone systems, medical and dental practices leasing imaging equipment, warehouses leasing forklifts – whenever the lease requires the lessor to be added.
Quoting and selling notes
- Liability status is separate from property interest: if the lessor also wants to be paid for damage to the equipment, add it as loss payee with BP 12 03.
- For many leases use the automatic version instead of scheduling each lessor.
- Texas has its own version (BP 14 77).
