lease of any auto by the insured or by any of his or her employees except for
a. any auto rented with a driver; or
b. any truckers’ hold harmless agreements. If an employee rents or hires an auto in his or her own name for the purpose of performing duties related to the insured’s business, use the appli- cable Employee Hired Autos endorsement. 2. Hired Car—If Any
The premium for hired car—if any shall be no less than the annual cost of hire rate of $30,000 per vehicle except for truckers which will be no less than $60,000 per vehicle. This coverage is available only on a primary basis.
3. Such coverage does not provide physical damage to any automobile rented or leased by the insured.
F. Hired Auto Physical Damage
Not Available
NOTE 1: All policies written in accordance with this Rule shall be subject to audits and/or preinsurance inspections.
NOTE 2: If a lease or similar agreement is renewed so as to extend (or extend with a relatively short termination or suspension) a previous lease agreement, which cumulatively exceeds six months or more, the risk shall be retroactively rated on a specified auto basis.
NOTE 3: “Cost of hire” means (1) the total dollar amount of costs incurred for the hire of autos, and (2) the total wages of all operators of hired autos, and (3) the total dollar amount of any other costs, i.e., repair, maintenance, fuel, tolls, etc.
directly associated with operating the hired autos whether such costs are absorbed by the insured, which costs may have been paid to the lessor, owners, or to others.
NOTE 4: Cost of hire does not include the total dollar amount of costs incurred by the insured for hire or lease of autos specifically described in the policy as owned or long term leased autos for which the premium has been established on a specified auto basis.
Rule 76. EMPLOYERS NONOWNERSHIP
LIABILITY
A. Eligibility
Coverage is limited to autos that weigh 10,000 pounds or less.
Only those locations listed on the application shall be covered.
Note: All policies written in accordance with this Rule shall be subject to audits and/or preinsurance inspections.
1. Employers nonownership liability covers the named insured for liability for bodily injury and/or property damage arising out of the use of any nonowned auto in the business of the named insured by any person other than the named insured. This coverage is excess of coverage provided by an employee’s or volunteer’s auto insurance.
2. Coverage for nonownership liability for garage risks is included in the basic garage charges. The following rating methodology applies to risks not rated under the Garage rule.
3. Employers nonownership liability does not apply to any risk that is eligible for coverage under Rules 53, 54, 88, and 90 or any vehicles rated in accordance with Rule 75.
B. Premium Development—Messenger/Courier Operations and Prepared Food Delivery Services
1. This section applies to the exposure of messenger/courier operations and prepared food delivery services utilizing nonowned autos and are operated by employees, independent con- tractors, or leased employees for the purpose of delivering food, packages, or messages.
2. If the messenger/courier operation or prepared food delivery service is a new business entity, a copy of the business plan shall be submitted with the application. The business plan shall be prepared and dated within the preceding 15 months of the application.
3. If the messenger/courier operation or prepared food delivery service is not a new business, a copy of an annual certified financial statement dated within the preceding 15 months shall be included with the application or a copy of the latest income tax return filed with the IRS which was submitted by an outside preparer.
4. If the messenger/courier operation or prepared food delivery service demonstrates at the time of application, upon renewal, and throughout the policy period, that all of the following criteria remain satisfied, the liability premium for the hired and nonowned exposure shall be calculated in accordance with Rule 75.C, provided
a. the employees, independent contractors, or leased employees possess a current insur- ance policy with primary insurance coverage on a commercial auto policy with at least the minimum financial responsibility limits; and
Note: A Personal Auto Policy with the public or livery and/or the carrying persons or property for a fee exclu- sions voided shall also satisfy this criterion.
b. the insured maintains file copies of current Declarations pages from insurers for all em- ployees, independent contractors, and leased employees with an endorsement naming the messenger/courier operation or prepared food delivery service as an addi- tional insured; and
c. the insurer has not filed proof of insurance for the messenger/courier operation or pre- pared food delivery service in compliance with any federal or state motor carrier finan- cial responsibility requirements; and
d. the minimum premium shall be based on cost of hire per year per location of $150,000.
5. If all of the conditions in paragraph B.4 do not exist, the liability premium shall be calculated by determining the average number of employees per day, per location that operate any motor vehicles in the insured’s business and charging that number times the Class 3 Private Passenger rates for the territory in which the risk is located. The minimum number of rating units shall be 4.00 per location.
Apply the following factor to bodily injury rates: Private Passenger Class 3—1.80
C. Premium Development—Employees and Volunteers
1. Not Transporting Clients—Volunteers
a. Determine the advance annual premium based on the number of employees in ac- cordance with paragraph D.1 below.
b. Charge an additional premium for volunteers as follows:
Determine the total number of volunteers by (1) dividing the average number of volun-
teer hours per year by 50, and
(2) dividing this amount by 30 to deter- mine the number of chargeable units. Multiply this number by $2 per unit for $10,000/20,000 bodily injury and $1 per unit for $10,000 property damage liabili- ty. The minimum premium shall be $21
for $10,000/20,000 bodily injury and $9 for $10,000 property damage liability. c. Refer to Rule 83 for bodily injury factor for
vehicles not subject to Florida No-Fault Law. d. Refer to Rule 78 for increased limits factors. 2. Transporting Clients—Employees and Volunteers
a. Determine the advance annual premium based on the number of em- ployees/volunteers in accordance with para- graph D.1 below.
b. Charge an additional premium as follows: Determine the total number of employees and volunteers using their vehicles to trans- port clients of the named insured.
(1) Divide the average number of volunteer hours per year by 50, and divide this amount by 30 to determine the number of chargeable units.
(2) Add the number of volunteer units to the actual number of employees using their vehicles to transport clients of the named insured.
(3) Multiply this number by $79 per unit for $10,000/20,000 bodily injury and $34 per unit for $10,000 property damage liability. The minimum premium shall be the rate of four units.
(4) Refer to Rule 83 for bodily injury factor for vehicles not subject to Florida No- Fault Law.
(5) Refer to Rule 78 for increased limits fac- tors.
3. Unless there is substantial change in exposures during the policy period, the advance premium is the earned premium.
D. Premium Development—All Others
1. Determine the total number of employees of the insured at all locations and select the advance premium from the following table:
Total Number of Employees $10,000/20,000 BI $10,000 PD 0–25 $ 42 $ 16 26–100 98 44 101–500 324 144 501–1,000 558 227 Over 1,000 952 422
2. If more than 25% of the insured’s employees regularly operate any motor vehicles not owned by the named insured in the insured’s business, multiply the rate applicable above by 2.00. 3. Unless there is substantial change in exposures
during the policy period, the advance premium is the earned premium.
NOTE 1: This coverage is only available to those applicants which do not own au-
tomobiles or to those applicants which have all their automobiles insured in the FAJUA for liability coverage. NOTE 2: This coverage is not available on an if
any basis.