Question
I'm planning to rent/lease several trailers due to a temporary spike in business.
At the present time my owner-operators provide physical damage coverage on my (undescribed) rolling stock and my carrier is the loss payee on the policy..
How does this work if I'm renting trailers...If damage does occur to a trailer the rental company has no way of knowing who did the damage even if each of my owner-ops listed the rental company as a loss payee.
In the past I simply provided my own physical damage insurance on these trailers but I want to avoid this as I'm not driving the equipment and I thus don't want to be implicated in any claims $$$
Ideally, I want my o/o's to be able to haul my trailers and the rentals interchangably with minimal fuss...but how to do this AND have the rentals covered on their physical damage insurance policies??
Answer
It would be easier if you covered the trailers under your policy. In that the owner-operator operates under your authority, you could still be held liable should a situation arise. However, if you're choosing to have the owner-operators provide coverage, they need to request coverage for "Non-owned undescribed trailers when singularly attached to the power unit" at a limit of what ever the maximum value of the trailer would be and to add the rental company and you as additional insured lessor and the rental company as loss payee. Due to the nature of the beast, it may be tough for them to get.
Now, although I just given you a description of how to remedy the situation, it may not be as easy as you think. Each insurance provider is different and therefore the coverage may vary between owner-operators. This could leave a gap in coverage or an exposure to you that was not anticipated.
You may want to reconsider and have this added to your policy.
Answer
Thanks Connie!