Coverage for merchants, distributors, and manufacturers of products that sell
their wares using time payment plans. This coverage can be on a vendors only
form, which covers the insured for the unpaid balance due the vendor until the
property is fully paid for, or on a vendors and vendees dual interest form,
which covers the entire cost of the item until the final payment is made. The
vendors and vendees dual interest form covers both the purchaser and the seller
in the event there is a loss to the merchandise before it is fully paid off.
The purchaser does not have to continue making payments on an item which is no
longer in use, and the vendor can maintain the goodwill aspects of terminating
the customer's payments.