A buyer contacted us just lately to seek out out if he had protection for rental automobiles pushed by his crewmembers. This led to extra questions, together with the insurance coverage agent’s favourite response: “Perhaps, depends upon what you’re doing. Let’s discuss it.”
The insured solely had a business hull with P&I coverage. I defined that if his crew have been utilizing the car to run errands for the boat − in service to the ship − then there may very well be protection for cures ought to the crewmember be injured whereas driving. However ought to the crewmember be concerned in an accident, there can be no protection for any harm to the car or for third celebration damages.
This could fall underneath autos protection.
There are a number of methods to maintain this with a rented car. The primary is to take the coverages provided by the rental firm. Whereas nobody likes to have additional charges added to an already costly invoice, that is usually the best resolution ought to there be an accident. Including “employed and non-owned auto” protection is one other resolution. Whereas there can be no protection for harm to the rented car or the worker driving it, there can be protection for the car hit or the motive force of that automobile.
The non-owned portion of this protection comes into play when an worker makes use of their private car for firm work. Whereas the insurance coverage on the car is major, if the declare exceeds the bounds the worker has, then the non-owned protection would kick in. Additionally, if your enterprise finally ends up being dragged into the declare and also you get sued, then your non-owned protection will reply as nicely.
Employed and non-owned auto can normally be added to a legal responsibility coverage, an present business auto coverage or, if wanted, written as a coverage.
One other space to contemplate are trailers owned by the enterprise. These have to be particularly listed on a business vehicle coverage for legal responsibility protection to reply. And keep in mind that the legal responsibility of the trailer follows no matter car it’s hooked up to. In case you have an worker towing a company-owned trailer together with his or her private car and the trailer causes a declare, then the worker’s insurance coverage would be the major protection.
Having an worker run right down to the marine provide retailer in their very own car sounds easy, however it may depart you susceptible to unexpected dangers.