My client operates parking garages. One of the garages used by condo residents was damaged by flooding earlier this month and it will take a few months to repair the garage. (Luckily my client removed all the autos to another garage they operate prior to the flooding.) My client rented a minivan from Enterprise in order to transport the residents back and forth from the garage to their condo.
Enterprise does not provide uninsured motorists coverage. My client's auto policy insuring the hired auto exposure has uninsured motorists coverage however, it is symbol 7 and therefore only applies to scheduled autos.
The above scenario is my concern. However, I am curious on how it would apply if the auto is a family member or friend's auto or an employer's auto.
Pennsylvania Subscriber
Regarding the ISO Business Auto policy here are the symbols that would need to be on the policy to cover an employee's auto, a friend's auto, or the auto of a family member if they are being used in the insured's business operations:
Symbol 1 – this would cover any and all autos the insured would use, regardless of ownership, as long as they are being used in the insured's business operations.
Symbol 7 – this covers autos that are specifically described, again regardless of ownership. It is not limited to only those autos owned by the insured; however, the auto must be described on the policy and a premium charged for each vehicle to be insured.
Symbol 9 – this covers autos that are not owned by the insured but are used in the insured's business operations. This would include autos owned by the employee, the family member, or the friend, but the auto would need to be used in the insured's business operations at the time of an accident.
Regarding a personal auto policy, it's all about the definitions and the interplay between "insured" and "uninsured motor vehicle". UM provides coverage for "bodily injury" sustained by an "insured" caused by an "uninsured motor vehicle". "Insureds" are defined as you, any "family member" or other person "occupying" "your covered auto". An uninsured vehicle does not include vehicles owned by, furnished or available for use by the insured or a "family member". Let's look at a few examples. Joe is our insured, with daughter Sally living in the house with her own vehicle and son George with a company provided vehicle. Sally and Joe are going shopping when they are in an accident, and Joe is injured. Sally forgot to pay the premium so her insurance coverage cancelled. Sally is technically uninsured; however, since Sally is a family member and owns the vehicle, there is no coverage under Joe's uninsured coverage.
George and Joe are going shopping and they have an accident also. Joe again is injured. Since George's vehicle is provided for his regular use, there is also no coverage under Joe's uninsured motorist coverage for his injuries.
Joe and Mike like to go to the bar for a drink on Friday nights, and it's Mike's turn to drive. On the way to the bar they have an accident, and poor Joe is again injured. After the accident Mike discovers that his insurance carrier became insolvent and he is uninsured. Mike's vehicle fits the definition of uninsured vehicle; Joe is the insured and sustained injuries in an accident, and since Mike is uninsured, Joe's injuries would be covered by his uninsured motorists coverage. There are many possible variations as to how losses could be played out, but hopefully these examples are helpful.