We insure a Business Auto Policy. The insured rented a vehicle from a rental company and gave permission to another employee to drive the rental vehicle. That employee was not listed on the rental agreement, thus they did not have permission from the owner of the vehicle to drive the vehicle. Would there be coverage for physical damage and property damage under the Business Auto Policy for the insured? Thanks.

Kentucky Subscriber

If the named insured rented the car and then gave permission to the employee to use it, it makes no difference that the user was not listed in the rental agreement. That rental agreement is a separate document from the BAP. The BAP provisions govern the coverage for the named insured and other insureds, and the BAP states that the named insured is an insured for any covered auto, and anyone else while using with the named insured's permission a covered auto that the named insured owns, hires, or borrows is also an insured. So, as long as the rented car is a covered auto, the named insured and the permissive driver are insureds.