Risk Management Advisory when Rejecting Rental Car Coverage This material is provided for informational purposes only, and should not be considered legal advice or an actual contract for insurance. Before taking any action that could have legal or other important consequences, confer with a qualified professional who can provide guidance that considers your unique circumstances.

Renting vehicles in the course of business is a common occurrence for design firms. However, few design professionals consider rental car insurance to be a priority consideration among all of the stresses associated with business travel. Rejecting coverage can be a mistake. What insurance coverage exists and the nuances of how that coverage applies should be evaluated and acted on long before design firm principals and employees ever sign an automobile rental agreement. Dealey Renton points out the potential coverage gaps and risk management advice when coverage is rejected from the rental agency. Always consult with your insurance advisor about your individual circumstances.

POTENTIAL COVERAGE GAPS:

Employee Hired Auto (ISO Form CA 9933): Rental companies seldom allow rentals under the companyname which is what the insurance policy intends. Investigate availability of coverage for coverage wherethe Employee can rent under his/her own name via Employee Hired Auto. Depending on the insurancecarrier this coverage may already be included or a firm can request it be added by endorsement.

Business & Pleasure: Educate employee so they know they are personally responsible for the vehicle whenthey are not conducting business.

Traveling Abroad: Always consider purchasing insurance coverage directly from the rental agency whenoutside the US, including Hawaii. While this cost may not be insignificant, it may prove itself invaluable inthe event of a rental vehicle accident. Corporate auto policies can still be a safety net for catastrophiclosses where liability is concerned.

Loss of Use & Diminution in Value: Because neither are standard coverages of a corporate auto policy,investigate the availability of Diminution in Value and Loss of Use coverage. Depending on the particularinsurance carrier, one or both of these coverages may be available by endorsement.

ADDITIONAL RISK MANAGEMENT TIPS AND NOTES:

Compile a list of all employees who travel on company business and rent vehicles. Educate employees regarding the need to evaluate and, if necessary; secure personal lines of insurance in

order to afford them with coverage in the event of a loss for which there is no available company-procuredcorporate insurance.

Provide an Auto ID card with the company’s Business Auto policy information and claim contact to staffmembers who rent vehicles for business purposes

Obtain motor vehicle reports for these employees to determine their driving history and prohibit employ-ees with poor driving records from driving on company business, rental vehicles or otherwise;

Determine whether employees who drive on company business have sufficient personal insurance limits.Remember, inadequate limits increase your company’s liability exposure.

If the rental is for a specific project, the rental agency insurance expenses can often be included as a directreimbursable.

ABOUT DEALEY, RENTON & ASSOCIATESFounded in 1950, Dealey, Renton & Associates (DRA) represents more than 3,000 design professional firms and is a member of the Professional Liability Agents Network (PLAN) and the Worldwide Broker Network (WBN). Our goal is to assist our clients in procuring affordable insurance coverage that meets their business needs and in developing risk management programs to mitigate or even prevent the need for claims against that insurance. Please call on us for assistance: we stand ready to help you.

Dealey, Renton & Associates Oakland. Pasadena. Santa Ana. dealeyrenton.com

©2016 Dealey, Renton & Associates

Risk Management Advisory when Rejecting Rental Car Coverage This material is provided for informational purposes only, and should not be considered legal advice or an actual contract for insurance. Before taking any action that could have legal or other important consequences, confer with a qualified professional who can provide guidance that considers your unique circumstances.

Renting vehicles in the course of business is a common occurrence for design firms. However, few design professionals consider rental car insurance to be a priority consideration among all of the stresses associated with business travel. Rejecting coverage can be a mistake. What insurance coverage exists and the nuances of how that coverage applies should be evaluated and acted on long before design firm principals and employees ever sign an automobile rental agreement. Dealey Renton points out the potential coverage gaps and risk management advice when coverage is rejected from the rental agency. Always consult with your insurance advisor about your individual circumstances.

POTENTIAL COVERAGE GAPS:

Employee Hired Auto (ISO Form CA 9933): Rental companies seldom allow rentals under the company name which is what the insurance policy intends. Investigate availability of coverage for coverage where the Employee can rent under his/her own name via Employee Hired Auto. Depending on the insurance carrier this coverage may already be included or a firm can request it be added by endorsement.

Business & Pleasure: Educate employee so they know they are personally responsible for the vehicle when they are not conducting business.

Traveling Abroad: Always consider purchasing insurance coverage directly from the rental agency when outside the US, including Hawaii. While this cost may not be insignificant, it may prove itself invaluable in the event of a rental vehicle accident. Corporate auto policies can still be a safety net for catastrophic losses where liability is concerned.

Loss of Use & Diminution in Value: Because neither are standard coverages of a corporate auto policy, investigate the availability of Diminution in Value and Loss of Use coverage. Depending on the particular insurance carrier, one or both of these coverages may be available by endorsement.

ADDITIONAL RISK MANAGEMENT TIPS AND NOTES:

Compile a list of all employees who travel on company business and rent vehicles. Educate employees regarding the need to evaluate and, if necessary; secure personal lines of insurance in

order to afford them with coverage in the event of a loss for which there is no available company-procured corporate insurance.

Provide an Auto ID card with the company’s Business Auto policy information and claim contact to staff members who rent vehicles for business purposes

Obtain motor vehicle reports for these employees to determine their driving history and prohibit employ-ees with poor driving records from driving on company business, rental vehicles or otherwise;

Determine whether employees who drive on company business have sufficient personal insurance limits. Remember, inadequate limits increase your company’s liability exposure.

If the rental is for a specific project, the rental agency insurance expenses can often be included as a direct reimbursabl

ABOUT DEALEY, RENTON & ASSOCIATESFounded in 1950, Dealey, Renton & Associates (DRA) represents more than 3,000 design professional firms and is a member of the Professional Liability Agents Network (PLAN) and the Worldwide Broker Network (WBN). Our goal is to assist our clients in procuring affordable insurance coverage that meets their business needs and in developing risk management programs to mitigate or even prevent the need for claims against that insurance. Please call on us for assistance: we stand ready to help you.