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Glossary
Business risk

Leasing clause

Also: Financial entity clause

Designation of the financial lessor or mortgage creditor as the preferred beneficiary of the compensation on the financed asset.

In practice

The financier requires it and it is often forgotten when renewing with another company. A financed asset without the clause requires redoing the file during reconstruction.

Where it is addressed

This term is covered in Riesgos patrimoniales.

Related terms

Insurable interestEconomic relationship between the insured and the asset or person exposed to the risk. Without interest, there is no valid insurance contract.BeneficiaryPerson designated to receive the benefit. In life insurance, their designation can be modified at any time unless expressly waived by the policyholder.SubrogationRight of the insurer to take the place of the insured, once the compensation has been paid, to claim from the party responsible for the damage.First demand guaranteeGuarantee that obliges the insurer to pay upon the simple request of the beneficiary, without discussing the underlying relationship.Machinery breakdownCover that protects against sudden internal damage to equipment due to mechanical, electrical, or operational causes, without an external claim.General averageProportional distribution between ship and shippers of the sacrifice or extraordinary expense made to save the maritime expedition.
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