Note that this policy will respond to suits against the company arising from accidents involving employees driving rental vehicles or where an employee is driving their own vehicle on company business. In addition, if there is an umbrella liability policy and or excess liability policy(ies), these may provide excess limits above the Non-Owned Automobile Liability Policy.
Commercial General Liability Coverage Explained
The CGL policy purchased by mining companies protects against physical damage or bodily injury claims arising from your exploration or mining operations. The policy is almost universally extended to include coverage for Non-Owned vehicles. The coverage is added by way of the SPF (standard policy form) No.6. This extension of coverage protects you for your liability to third parties arising out of the operation by you (or on your behalf) of vehicles that you do not own including “Hired Automobiles”.
The policy provides the following definition of “Hired Automobiles”: The term “Hired Automobiles” as used in this policy means automobiles rented or leased from others with or without drivers, used under the control of the Insured in the business stated in Item 3 of the application but shall not include any automobile owned in whole or in part by or licensed in the name of the Insured or any partner, officer or employee of the Insured.
The application is automatically added to the policy and the business will follow the same named insured listed on the CGL policy.
There are several exclusions to the coverage, some of which are worth noting here:
• Liability which arises from the use or operation of any automobile while personally driven by the Insured if the Insured is an individual
• Liability imposed upon any person insured by this policy: by any workmen’s compensation law or by any law for bodily injury to or the death of the Insured or any partner, officer or employee of the Insured while engaged in the business of the Insured
• Liability assumed by any person insured by this policy voluntarily under any contract or agreement.
• Long term leased vehicles (over 30 days)
Contractual Liability
When you rent a vehicle, you engage in a contractual relationship with the rental company where you assume liability for the operation of the automobile with the
car rental company. It is therefore important that contractual coverage is added to the policy by way of an endorsement known as SEF (standard endorsement form) No. 96.
If this coverage is granted by the policy - and it ordinarily should be, the policy will probably contain an exclusion for Long Term Leased vehicles. This is called an SEF No. 99. This endorsement excludes coverage for vehicles hired or leased for longer than a certain period such as 30 days. This is because these vehicles should have ‘owned’ auto insurance purchased by the owner, either the company or individual.
Find Out More:
This list is not exhaustive and there are a variety of other insurance coverages that mining companies need in order to address all the risks they face and prevent losses. Download our free guidebook “Axis Mining - Rented Vehicle Insurance & Risk Management Guide” here to find out how you can protect your company’s assets:
