Different symbols cover different exposures in rental car policies

Coverage Q&A It's important for an insurance form to have the right symbol when a business rents a vehicle.

How do symbol 1 and symbol 8 differ in coverage when a business rents a vehicle? (Photo: Arenacreative/iStock)

Every claim is different, and some insurance policies can be difficult to interpret for unique situations. FC&S Expert Coverage Interpretation, the recognized authority on insurance coverage interpretation and analysis for the P&C industry, makes it simple to find credible answers to your complicated coverage questions. Analysis brought to you by our FC&S experts. 

Editor’s Note: This week’s question deals with how just one question on a rental car application could wreak havoc on the insured’s coverage.

Question: I have a question regarding the following scenario: A salesperson is assisting a customer in renting a vehicle from a rental car company at the airport. The rental company wants the customer’s name on the contract, but then the customer pays for the rental using a company credit card.

The rental company has a business auto insurance form written with either symbol 1 or symbol 8. How does the company policy respond to the above situation given these symbols?

— Wisconsin Subscriber

Analysis: When choosing which symbols will best meet the insured’s needs under commercial auto, it is important to understand what each symbol will cover. Sometimes this requires taking a deep dive into all of the insured’s operations and asking additional questions to gain information on how, when, and where they use autos in each aspect of their business and what type of vehicles they use. Sometimes the slightest nuance in the symbol description can eliminate coverage for that symbol, requiring a different or additional symbol to be added to the policy.

Answer: To learn the answer to this week’s coverage Q&A, please log into your FC&S Expert Coverage Interpretation account.

Related:

Recommended Stories