Note that this policy will respond to suits against the company arising from accidents involving employees driving rental vehicles or where an employee is driving their own vehicle on company business. In addition, if there is an umbrella liability policy and or excess liability policy(ies), these may provide excess limits above the Non-Owned Automobile Liability Policy:
When you rent a vehicle, you engage in a contractual relationship with the rental company where you assume liability for the operation of the automobile with the
car rental company. It is therefore important that contractual coverage is added to the policy by way of an endorsement known as SEF (standard endorsement form) No. 96.
If this coverage is granted by the policy - and it ordinarily should be, the policy will probably contain an exclusion for Long Term Leased vehicles. This is called an SEF No. 99. This endorsement excludes coverage for vehicles hired or leased for longer than a certain period such as 30 days. This is because these vehicles should have ‘owned’ auto insurance purchased by the owner, either the company or individual.
Damage to the Rented Vehicle
Coverage for damage to the vehicle that you have hired or rented can be added to the policy by way of another endorsement known as an SEF No. 94. The endorsement will state the limit of coverage (typically $50,000) and the deductible amount applicable.
Find Out More:
It's important that proper insurance policies are in place for scenarios like this. This list is not exhaustive and there are a variety of other insurance coverages that mining companies need in order to address all the risks they face and prevent losses. Download our free guidebook “Axis Mining - Rented Vehicle Insurance & Risk Management Guide” here to find out how you can protect your company’s assets: