Vendors single interest coverage (VSI)

{
  "id": "MLC-T-INS-003473",
  "term": "Vendors single interest coverage (VSI)",
  "field": "Insurance and risk management",
  "definition": "Insurance that protects a lender or vendor against physical damage to collateralized property, such as vehicles or equipment, when the borrower or purchaser fails to maintain their own insurance. This coverage only protects the lender's financial interest, not the borrower's equity. It is often used in auto financing to cover the outstanding loan balance.",
  "abbreviation": "VSI",
  "url": "https://mlchart.com/terminology/insurance/vendors-single-interest-coverage-vsi/"
}