Quest News™

September 24, 2015

Claims Corner – Hired Auto Physical Damage


An employee of a freight forwarding company rented a vehicle for a business trip in St. Paul, MN. During the networking reception, a hailstorm broke out and fairly large, golf-ball sized stones rained down for approximately twenty minutes. When the employee left the dinner and saw the rental car, she found it had sustained significant damage.

The rental company held her responsible for the damages and the cost of repair. The claim was turned into her company’s insurer, and fortunately it was covered because the employer had purchased hired auto physical damage insurance. The policy included an endorsement for employees renting automobiles in their own names on business as the insured.

Due to the employer’s forethought, the policy covered the full amount of the automotive damage.

Damage Amount: $7,500
Claim Payment: $7,500

Does your company have this coverage? To find out more about Avalon’s Business Insurance products including its Business Auto and Hired/Non-Owned Auto Coverage, contact marketing@avalonrisk.com or visit our Business Insurance page to read about more products and services offered to employers.

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