Michigan Truck Rental Insurance Policy Information
Michigan Truck Rental Insurance. Truck rental operations may offer both short and long-term rental and leasing of larger trucks, recreational vehicles, semi-tractor, semi-trailer, or other types and sizes of trailers.
Some offer vehicles or trailers, packing materials, dollies and other lifting devices for customers to transport their own personal property.
Many rental companies have vehicle refueling and repair on premises, while others will contract these functions to others. Services that may be offered include delivery of the rented vehicle to a customer or the pickup and transport of the customer to the rental facility.
Some rental agencies sell the vehicles that have reached a set mileage or usage to the general public while others sell to used truck dealers or auctions.
Although trucks rented out for moving purposes are the most well-known example of services truck rental companies provide, rental trucks may be used to transport a variety of goods to those people who only require temporary access to such vehicles.
As such, truck rental services are engaged in a vital branch of commerce, and have the potential to be extremely successful. With the fact that auto collisions are not uncommon alone in mind, it is, however, also clear that truck rental companies take on extensive financial risks.
What role might a comprehensive insurance plan play in protecting these companies from losses associated with circumstances beyond their control, and what types of Michigan truck rental insurance coverage are needed? Keep reading to find out more.
Michigan truck rental insurance protects your short and/or long-term rental and leasing operation from lawsuits with rates as low as $87/mo. Get a fast quote and your certificate of insurance now.
Why Do MI Truck Rental Operations Need Insurance?
Just like any other business, truck rental companies face a number of risks. While smaller mishaps lead to no more than a manageable and temporary financial inconvenience, some perils are extensive enough in nature that they could threaten the company's very future.
The first hazards that come to mind are those in which a truck rental company's vehicles are damaged or lost, whether to an accident in which the driver was at fault, an accident in which the improper maintenance of the truck (allegedly) represented a contributing factor, or even theft and vandalism.
In addition, however, truck rental companies also have to consider the same risks that will be familiar to almost any business owner. Your commercial office space may suffer extensive damage in an act of nature, and your fleet may suffer heavy losses at the same time.
Fires, theft, and vandalism are further examples of threats to your commercial property. An employee may be injured over the course of their professional activities, or your company's activities could inadvertently cause damage to property that belongs to another commercial venture or private individual, after which lawsuits may follow.
Simply said, MI truck renting operations may be confronted by ruinous circumstances at virtually any time, even if they do everything in their power to run a smooth and safe operation. In investing in the best possible Michigan truck rental insurance, you don't have to worry — because you know that you are protected.
What Type Of Insurance Do Michigan Truck Rental Businesses Need?
The precise types of Michigan truck rental insurance coverage needed depend on their individual circumstances. Factors like the location of your business, the types of vehicles you own as well as the size of your fleet, and your number of employees all have an impact on your insurance needs.
A skilled commercial insurance broker will be able to offer advice pertaining to your unique business. Here, meanwhile, is a look at essential forms of coverage MI truck rental companies should have on their radar:
- Fleet Insurance - Regardless of the size of your fleet, this set of policies can cover all your trucks at once. Whether trucks suffer damage in acts of nature, are lost to theft, or are involved in a collision, the repair or replacement costs are covered by this category of insurance designed especially with businesses like yours in mind.
- Commercial Property - This type of Michigan truck rental insurance will protect your business from catastrophic financial consequences if your premises face damage or destruction due to unforeseen circumstances such as theft, fire, acts of nature, and vandalism. Both your physical building and its contents are covered, and outdoor property can be protected as well.
- Commercial General Liability - Imagine that a customer trips on an improperly maintained portion of your driveway, or that an employee causes accidental damage to property belonging to someone else. These types of mishaps can happen in any company, and when they do, costly litigation may follow. General liability coverage helps you deal with the financial fallout by covering your legal costs.
- Workers Compensation - This type of insurance is legally mandated for companies with employees. If an employee were to sustain a work-related injury, their medical expenses are covered. In the event that the injury renders them unable to work for a time, workers' comp pays for their lost income too.
Because these types of insurance are merely examples of the coverage that may be required, your next step should lie in talking your specific circumstances and risk profile over with a commercial insurance broker, who can help you craft the Michigan truck rental insurance plan that will best protect your business.
MI Truck Rental's Risks & Exposures
Premises liability exposure is high due to the number of visitors. Customer waiting areas should be provided and customers must not be permitted in the garage area. Floor coverings should be in good condition with no frayed or worn spots on carpet and no cracks or holes in flooring.
Steps and uneven floor surfaces should be prominently marked. Sufficient exits must be provided and be well marked, with backup lighting systems in case of power failure.
Employees who transport customers must be screened and trained to interact appropriately. Parking lots and sidewalks need to be in good repair with snow and ice removed, and generally level and free of exposure to slips and falls. If the premises are open after dark, there should be adequate lighting and appropriate security for the area.
There should be a disaster plan in place for unexpected emergencies. Vehicles in open lots can pose an attractive nuisance. Chains and fences should be in place to prevent entrance after hours.
Personal injury exposures include allegations of discrimination, false arrest or detention, unauthorized or intrusive searches, or wrongful ejection from the premises.
Product liability exposures are high if used vehicles are sold directly to the general public. Check-off procedures should be in place.
Environmental impairment exposures can be significant due to the storage of fuel in underground fuel tanks and the disposal of used oils, solvents and other hazardous wastes from service and repair operations. All tanks and pipes, underground or above, must meet state or federal regulation and be routinely tested for leakage.
Spillage and leaking of pollutants into the air, ground, or water can result in high cleanup costs and fines. Spill procedures must be in place to prevent the accidental discharge of sludge from water reclamation systems used in washing vehicles.
Contracts should be in place to dispose of all environmentally dangerous chemicals. If there are underground storage tanks, a UST policy will be needed.
Workers compensation exposure in the office is minimal. Employees performing maintenance or repair work should be properly trained. Employees working in the garage can incur injuries from slips, falls, back sprains, strains and hernias, hearing impairment from noise, and foreign objects in the eye. Eye and ear protection should be provided.
Welders may suffer burns. Repair areas should be properly ventilated.
Hoists need to be regularly inspected to prevent vehicles from falling off. The proper use of lifting techniques and of dollies should be encouraged. Hoists need to be regularly inspected to prevent vehicles from falling off.
Refueling should be done only in well-ventilated areas to minimize inhaling of fumes. Information regarding chemicals should be available to employees along with early warning signs of problems. Pickup and delivery of customers or vehicles can result in injury due to vehicular accidents.
Property exposure comes from office and garage operations. Electrical equipment and wiring should meet current codes and be well maintained. Flammables such as fuels, paints, lubricants, oils, degreasers, and solvents used in the refueling and repair operations must be properly labeled, separated, and stored away from combustibles.
Spray painting should be done in spray booths with good ventilation, UL-approved wiring and fixtures, and adequate controls.
Any welding needs to be evaluated for proper handling of the tanks and gases. It should be done away from the other operations with either a separate room or flash/welding curtains. Smoking should be prohibited.
Poor housekeeping is a serious fire hazard. Unless stored and disposed of properly, oily rags can spontaneously combust and cause a fire.
Vehicles are target items for thieves. Appropriate security controls must be taken including physical barriers such as chains, fences, or gates, lighting to deter access to the premises after hours, and an alarm system that reports directly to a central station or the police department.
Business income and extra expense exposures are high as replacement facilities may not be readily available.
Inland marine exposure comes from accounts receivables if the operation offers credit, computers to monitor rentals and vehicles, signs, and valuable papers and records for customers' information, vehicle titles, and maintenance records. Backup copies of all records, including computer records, should be made and stored off premises.
Crime exposures are from employee dishonesty and theft of money and securities. Background checks, including criminal history, should be performed on all employees handling money. Truck rental operations involve a number of transactions and accounts that can be manipulated. There must be a separation of duties between persons handling deposits, billing, ordering, disbursements, and reconciling bank statements.
Physical audits should be conducted at least annually. Theft of money and securities prevention requires controls of monies kept in the cash drawers and regular bank drops.
Commercial auto exposure is high due to the ongoing use of vehicles by renters whose driving habits are unknown to the operation and who may not be familiar with driving conditions in the area where the vehicle is rented.
The rental company should keep a copy of the renters' driver's license and proof of insurance. The rental contract should identify all drivers and state that unlisted, unlicensed, or minor drivers are not permitted to operate the vehicle. It should also include a hold-harmless agreement in which renters agree to assume responsibility for the operation of the vehicle to limit the business's exposure to vicarious liability only.
If a collision damage waiver is offered, the customer's signature is needed to document whether this was purchased or declined. The customer should also be required to sign a vehicle pre-inspection form to minimize disputes when the vehicle is returned with damages.
All employee drivers should have valid licenses and their MVRs regularly checked. Vehicles must be regularly maintained with records retained. If vehicles are furnished to employees, there should be written procedures for personal and permissive use.
Vehicles stored in open lots are particularly susceptible to damage by hail, wind, flood, vandalism, and theft. Lots should be well lighted with chains, fences or gates to prevent access and transport. An alarm system that reports directly to a central station or the police department should be used. Security guards may be appropriate in some areas.
Garagekeepers exposure is from damage that can occur to customers' vehicles left with the rental company while renting other vehicles. Keys to customers' vehicles should be kept in a locked box to prevent unauthorized use. Proper identification should be required to prevent handing a customer's car to the wrong owner.
Michigan Truck Rental Insurance - The Bottom Line
To learn more about the exact types of Michigan truck rental insurance policies you'll need and how much coverage you should carry and associated costs, consult with a reputable agent that is experienced in commercial insurance.
Michigan Economic Data And Business Insurance Requirements
Business owners who are interested in establishing operations Michigan must have a thorough understanding of the state's economy. They should also familiarize themselves with any regulations and limits that state may have in place for commercial insurance.
Any entrepreneur who is thinking about starting a business in the Great Lake State first needs to determine if it's a feasible location for business operations. As such, it's important to have a keen understanding of pertinent details regarding the economy of Michigan, in addition to the types of insurance coverage that are mandatory for corporations that operate within the state.
Economic Trends for Businesses In Michigan
After a long period of stagnant job growth in the early part of the 21st century, MI has been experiencing a steady increase in employment gains. Between 2009 and 2018, the state has enjoyed a period of uninterrupted job growth; the longest stretch of job growth since World War II. According to economists at the University of Michigan. While there has been a slight decline in the rate of job growth, job creation continues and forecasters say will continue for the next two years, into 2021.
In 2018, an estimated 55,200 jobs were created; in 2019, it's expected that 35,800 jobs will be created, and in 2020, economists believe that there will be a total of 39,300 jobs created in Michigan. While that rate of growth is 1.9 percent slower than the job growth rate between 2011 and 2016, it is still a steady increase overall. In total, approximate 683,200 jobs will be created in MI between 2099 and 2020; almost four out of the five jobs that were lost during the early part of the 21st century will be recovered.
While the unemployment rate has steadily improved, it is still above the national average. In March of 2019, the national unemployment rate was 3.8 percent, while in the state of Michigan, it was 4.0 percent. Mid-Michigan has experienced the largest growth rate in the state, and according to forecasters, it looks like that trend will continue, moving forward. Industries that are expected to see the most growth include:
- Energy, due largely to research and development in clean energy
- Food and agriculture
- Transportation and mobility
- Healthcare industry
- Information and technology
In the state of MI, business owners are not legally required to carry liability insurance; but most entrepreneurs opt to invest in a General Liability or Business Owner's Policy (BOP). A commercial auto insurance policy is also required for any businesses that use motor vehicles to conduct any aspect of their business operations. Workers' compensation insurance is also required for any businesses with non-owner employees. While the following forms of coverage are not required, depending on the type of business you operate, they are recommended:
- Data breach insurance
- Business income insurance
- Commercial Umbrella insurance
Additional Resources For Auto Service & Repair Insurance
Read useful small business auto service and repair insurance policy information. In an aotu related business, you need to have the right type of commercial insurance coverage so that your garage, employees, and customers vehices & other property is protected.
- Auto Dealers
- Auto Detailing & Mobile Car Wash
- Auto Dismantlers
- Auto Garage
- Auto Glass Repair Shops
- Auto Paint Shops
- Auto Service Repair
- Auto Supply Parts Store
- Car Rental
- Car Wash
- Gas Station
- Motorcycle Dealers
- Parking Lot
- RV Dealers
- Snowmobile Dealers
- Truck Rental
- Used Car Dealer
There is a Auto Service Risks Program is an enhancement of the Commercial Package Policy that is available to certain Auto Service Operations.
Automobile repair shops and garages offer a wide variety of mechanical services, from engine repair to tune-ups. The operation may be stand-alone or be part of another business such as an automobile dealership or filling station.
Gasoline stations are normally limited to the dispensing of gasoline, kerosene, diesel or fuel oil with incidental sales of auto accessories and pre-packaged snack food items. Larger gasoline stations may offer other services, such as auto repair, retail sales of food or auto parts, snack bar or restaurant, propane tank exchange, towing, or baths and overnight lodging facilities for truckers.
Car washes provide facilities for cleaning automobiles and other motor vehicles. Some are drive-through with either partially or fully automated conveyance of the vehicle throughout the operation. Hand washing, waxing, or interior cleaning of the vehicle may be offered, with customers sent to a waiting area. Damage to the customers' vehicles is the primary exposure as machinery and washes can break antennas, pull off stripping, crack glass and damage tires.
The three basic types of risks that are contemplated by the Auto Service Risks Program include:
- Repair Shops - operations primarily engaged in auto repair. This includes shops that do body, fender, radiator, ignition service and paint work.
- Service Stations- operations primarily engaged in servicing autos. The sale and installation of auto accessories are a part of this category as long as major engine or bodywork is not performed. Car wash facilities are eligible.
- Storage garages and other parking places.
The following classifications are specifically listed as eligible: Automobile:
- Quick Lubrication Services
- Repair or Service Shops
- Repair Shops–Self Service
- Car Washes–self-service and full-service
- Convenience Food/Gasoline Stores–self-service, full-service and combined
- Gasoline Stations–self-service, full-service and combined
- Parking–public-open air and not open air
Automobile, motor home, mobile home, trailer, and motorcycle dealers are NOT eligible for this program.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income, Equipment Breakdown, Employee Dishonesty, Money and Securities, Accounts Receivable, Computers, Signs, Valuable Papers and Records, General Liability, Employee Benefits, Environmental Impairment, Underground Storage Tank Liability, Umbrella, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Flood, Computer Fraud, Forgery, Goods in Transit, Cyber Liability, Employment-related Practices, Business Automobile Liability and Physical Damage, Garagekeepers and Stop Gap Liability.
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