Avoiding Gaps in Coverage for Hired Equipment

It is bound to happen.  Your tractor is in the shop so you have to rent a truck to complete this week’s runs or you get a great opportunity to haul a load of ice cream, but first need to borrow a buddy’s reefer unit.  Many times the arrangements are made at the last minute while trying to secure a load that needs to go out right now!  In the rush we can forget to think through the mechanics of it all, specifically whose insurance is going to respond if there were an instance when the loaned equipment was involved in an accident.I often hear from clients (too frequently after the fact) that they assumed the other party’s insurance would pay, but that is not always the case.  Insurance doesn’t necessarily follow a piece of equipment no matter who is operating or pulling it.  And, even if it were to, it is important to consider the ramifications to a business relationship or friendship if damage was to occur.  Too often it happens that each party wants the other’s insurance to pay.  


As a rule we encourage our clients to round out their truck policy by adding hired and non-owned auto liability insurance and hired physical damage so that they are prepared for these eventualities.  Here is how it works:

Hired Auto Liability:  This coverage extends the auto liability coverage to include power units you have rented or short term leased (usually defined as a less than 30-days.)    

Non-Owned Auto Liability:  This coverage extends the auto liability coverage to include non-owned vehicles being operated for the benefit of your company.  Non-owned meaning that you have not hired it (rented or leased it).  This often takes the form of an employee operating their own vehicle while running an errand for the business.  For example: running to the bank, post office or office supply store

Hired Physical Damage:  This coverage extends the physical damage coverage to include equipment you have rented, borrowed or short term leased (usually defined as less than 30-days.) 

To learn more about these coverages or to request a quote, call us today at (800) 596-TRUCK (8782).  All of us at the Navigator Truck Insurance Agency work hard at being accessible, helpful and result oriented.

Until next month,

Jeffery A. Moss


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