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Lease Gap Coverage

Lease Gap Coverage

Definition

Optional coverage available by endorsement to a commercial auto policy that applies to increase the amount of recovery in the event of a total loss to a covered auto that is subject to a loan or lease agreement and the amount of outstanding indebtedness on the auto is greater than what the insured could recover under actual cash value (ACV) or cost to repair or replace.

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Commercial Liability Insurance
Insurance Law Essentials
The Additional Insured Book

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