Auto Physical Damage Coverage on Primary Basis

Is there an endorsement to the standard business auto policy (BAP) that will make the employer's BAP primary for physical damage to a hired or rented car, one that is rented by an employee? In this case, the employee rented a car in his own name while on company business and the named insured employer wants to make sure his auto policy offers primary coverage in case of an accident.

Colorado Subscriber

For hired auto physical damage coverage, the BAP treats any covered auto leased, hired, or rented by the named insured the same as an auto that is owned by the named insured. This provides primary coverage for the rented auto. When an employee rents a car in his own name, as opposed to renting the car in the named insured's name, this provision is not applicable.

What is needed in this instance is endorsement CA 20 54 10 01. This endorsement is the employee hired auto endorsement. CA 20 54 makes the employee an insured while operating an auto hired in his name. And, it makes hired auto physical damage coverage primary if the covered auto is hired or rented by the employee in his name, with the permission of the named insured's business.

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