Your business auto policy has limitations that can result in the denial of coverage for an employee following an accident.
One such limitation deals with employees who rent a vehicle in their own name for business purposes. The standard business auto policy grants insured status to employees while operating a vehicle covered by the business for business purposes, but employees who rent vehicles in their own names may find themselves not covered by the business’ auto policy.
Here are two common methods for closing this coverage gap:
1. Use a Personal Auto Policy
Employees who rent vehicles in their own name can seek coverage for a loss under their personal auto policy, even if the vehicle is rented for business purposes.
2. Modification or Endorsement to the Business Auto Policy
Businesses may purchase an endorsement to their business auto policy to cover this exposure, but it should be added explicitly. There is no guarantee this coverage is automatically included.
Call us if you would like to find out more about endorsements that expand your business auto policy.
Source: Florida Insurance School- Continuing Education