What Is Vendor’s Single Interest (VSI) Insurance and How Does It Work?
Vendor’s Single Interest (VSI) insurance, also known as Blanket VSI, is a specialized collateral protection policy that safeguards a lender’s financial interest in collateral when a borrower fails to maintain adequate insurance coverage. The policy is designed to provide automatic coverage over a lender’s consumer loan portfolio, which may include autos, vans, light trucks, motorcycles, RVs, watercraft, mobile homes, and heavy trucks, with the option to add additional collateral types.
