All finance agreements on secured business vehicles will stipulate that the borrower take out a comprehensive insurance policy on the vehicle. This is in addition to the compulsory third-party insurance, CTP. Most commercial finance products are based on a secured loan format. That means the lender uses the vehicle as security against the loan such as with Chattel Mortgage or the lender retains ownership of the vehicle on their balance sheet. In order to assure that security the borrower needs to take out an insurance policy. The lender will want to be assured that should the vehicle be stolen, damaged or completely written off in an accident, the insurer will cover your loan.