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Truck Rental Insurance Policy Information

Truck Rental Insurance

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 truck rental insurance coverage are needed? Keep reading to find out more.

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.

Below are some answers to commonly asked truck renting insurance questions:

What Is Truck Rental Insurance?

Truck rental insurance is a type of insurance policy that provides coverage for rental trucks. It protects the rental company and the rental customer against financial losses due to damages, theft, or liability for accidents involving the rental truck.

The insurance typically covers physical damage to the truck, liability for property damage or injury to others, and loss of use if the truck is unable to be used due to a covered claim. Truck rental insurance is typically offered by the rental company and is required for renters to take out before using the truck.

How Much Does Truck Rental Insurance Cost?

The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for truck rental operations ranges from $87 to $119 per month based on location, number of units, revenue, claims history and more.

Why Do Truck Rental Businesses Need Insurance?

Box Truck Rental

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, 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 truck rental insurance, you don't have to worry — because you know that you are protected.

What Type Of Insurance Do Truck Rental Operations Need?

The precise types of 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 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 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 truck rental insurance plan that will best protect your business.

Truck Rental's Risks & Exposures

Commercial Truck Rental

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.

What Does Truck Rental Insurance Cover & Pay For?

Truck Rental Insurance Claim Form

Truck rental companies can be sued for various reasons, including:

Accidents: If a truck rented by the company is involved in an accident that causes property damage or bodily injury, the company may be held liable for the damages.
Insurance can help pay for the lawsuit in this case by covering the cost of legal defense and any damages awarded against the company.

ANegligent maintenance: If a truck rented by the company is found to have been poorly maintained, and this led to an accident, the company may be sued for negligence.
Insurance can help pay for the lawsuit in this case by covering the cost of legal defense and any damages awarded against the company.

ABreach of contract: If the rental agreement between the company and the renter is breached, such as by failing to provide a properly functioning truck or misrepresenting the condition of the truck, the renter may sue the company for breach of contract.
Insurance can help pay for the lawsuit in this case by covering the cost of legal defense and any damages awarded against the company.

AEmployment disputes: If an employee of the company is involved in a dispute, such as wrongful termination or discrimination, the company may be sued by the employee.
Insurance can help pay for the lawsuit in this case by covering the cost of legal defense and any damages awarded against the company.

In general, insurance can protect truck rental companies by providing coverage for legal defense costs, settlements, and judgments resulting from lawsuits. This can help mitigate the financial impact of a lawsuit on the company and enable it to continue operating. However, it's important to note that the specific coverage and limits of an insurance policy can vary depending on the terms of the policy and the nature of the lawsuit.

Commercial Insurance And Business Industry Classification

Description for 7513: Truck Rental and Leasing, Without Drivers

Division I: Services | Major Group 75: Automotive Repair, Services, And Parking | Industry Group 751: Automotive Rental And Leasing, Without Drivers

7513 Truck Rental and Leasing, Without Drivers: Establishments primarily engaged in short-term rental or extended-term leasing (with or without maintenance) of trucks, truck tractors, or semitrailers without drivers. Establishments primarily engaged in finance leasing of trucks are classified in Finance, Industry 6159; those renting trucks with drivers are classified in Transportation, Industry Group 421; and those primarily engaged in renting and leasing, except finance leasing, of industrial trucks are classified in Industry 7359.

  • Truck leasing, except industrial trucks and finance leasing: without
  • Truck rental, except industrial: without drivers

Description for 7519: Utility Trailer And Recreational Vehicle Rental

Division I: Services | Major Group 75: Automotive Repair, Services, And Parking | Industry Group 751: Automotive Rental And Leasing, Without Drivers

7519 Utility Trailer And Recreational Vehicle Rental: Establishments primarily engaged in daily or extended-term rental of utility trailers and recreational vehicles. Establishments primarily engaged in renting motorcycles, bicycles, golf carts, gocarts, or recreational boats are classified in Industry 7999; and those engaged in renting airplanes are classified in Industry 7359. Establishments primarily engaged in the rental of mobile homes on site are classified in Real Estate, Industry 6515.

  • Mobile home rental, except on site Motor home rental
  • Popup camper rental
  • Trailer rental
  • Utility trailer rental

Truck Rental Insurance - The Bottom Line

To learn more about the exact types of 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.

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 Service Insurance

The auto service and repair industry is an essential part of the transportation sector, responsible for maintaining and repairing vehicles to keep them running smoothly and safely. However, this industry also comes with inherent risks and liabilities, which is why commercial insurance is necessary to protect both the business and its employees.

First and foremost, the auto service and repair industry deals with hazardous materials and equipment on a daily basis. There is a risk of accidents and injuries occurring in the workshop, and insurance can provide financial protection in the event of a workplace accident or injury.

Additionally, the auto service and repair industry is subject to the risk of property damage. There is a potential for damage to vehicles in the workshop, as well as damage to the business' own property, such as tools and equipment. Business insurance can cover the costs of repair or replacement in the event of such damage.

Furthermore, the auto service and repair industry is vulnerable to liability claims from customers. If a customer's vehicle is not repaired properly, it can result in further damage or accidents on the road, leading to liability claims against the business. Insurance can provide coverage for these types of claims, protecting the business from financial loss.

In conclusion, the auto service and repair industry needs commercial insurance to protect against the risks and liabilities inherent in this line of work. Without insurance, businesses in this industry would be vulnerable to financial loss and legal action, which could ultimately lead to their failure.

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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