Rental Car Risk Management 101
When it comes to renting cars for business use, it’s important to understand rental car risk management as well as your coverage options to smooth out any surprise bumps in the road. Since coverage varies from one rental car agency to the next and because rental agreements have evolved in recent years and possibly create pitfalls for auto renters.
Have A Rental Car Risk Management Policy
If you are relying on your Hired Car Physical Damage (SEF#94) and or Non-Owned Auto Third Party Liability Coverage (SPF#6) on your commercial general liability policy to protect you, but the car isn’t rented by the business, the hired car physical damage coverage may not respond to claims. As a standard business practice, your employees should use the business name on the agreement and pay with a business credit card that provides either coverage for physical damage and or liability associated with renting vehicles while on business wherever/whenever possible.
Rental Car Insurance. Accept or Reject?
Q. Should you and/or your employees decline the insurance offered by the car rental company?
A. Unfortunately, there are provisions in every rental contract that differ from rental car company to rental car company and there are many ways the coverage they offer could be voided. Given this lack of consistency and therefore challenge of knowing exactly what you are covered for ALIGNED encourages most clients to accept the insurance offered by the rental company, ensure the credit card used has coverage and that their commercial general liability policy includes appropriate coverage for the exposure associated with renting cars to ensure there are no gaps as an uninsured automobile loss can be financially devastating.
An ALIGNED Advocate can provide expert guidance about rental car insurance and risk management best practices for your organization. Talk to one of our advocates today about how we can help you secure the best products, services and insurance solutions for your business.
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100% Canadian owned, ALIGNED is a premiere insurance brokerage that serves more than 1,400 clients across the country. ALIGNED’s offices in Toronto, Calgary and Vancouver are supported by a national operations centre in Cambridge, Ontario. Uniquely within the industry, ALIGNED creates, negotiates and delivers the best business insurance and risk management strategies/solutions to organizations like yours. |
