Risk Management and Workers' Compensation

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Common Auto Insurance Questions of University Staff

 

QUESTION

When traveling on company business, and renting a car, is there a need to purchase the Loss Damage Waiver (LDW) insurance?

ANSWER

Yes, rental insurance needs to be obtained.   If you are renting through the University's contract with Enterprise or National Rental for business use, insurance is included in the rental price.  Simply provide the rental agent the State of Ohio/IUC Contract ID # XZ38Y11.  Coverage provides full LDW (including scratches and dents) with no deductible and is good in the U.S. and District of Columbia.

If the rental is through any other company, then insurance should be purchased as per the University Travel and Business Expense Reimbursement policy # 3364-40-03. 

   

 

QUESTION If a University employee uses a personal auto for university business, and is involved in an accident, what insurance would respond.
ANSWER

The employee's personal insurance would be primary for both liability and physical damage. The University would provide excess liability (after the employee's insurance pays first) under its non-owned auto liability coverage; but, not for physical damage.

   

 

QUESTION

If a University employee rents a vehicle for University business and allows someone else to drive, and the other individual driving has an accident, what insurance would respond?

ANSWER

Automobile rental contracts can be very specific about driver responsibility. Many will require that every individual driving the vehicle be listed and some exclude individuals under age 21 from operating a vehicle. Depending on the contract language and the circumstances, a University employee might be in violation of policy, thus voiding the contract. In this case, the University employee could be held personally liable if the University's insurance denied coverage.  Rental agencies generally carry liability insurance at state required minimum levels and this could respond first.

Last Updated: 3/22/15