Avoid Lending or Renting Church Vehicles

Think about insurance coverage and liability before lending

Has your church or school ever been asked to loan or rent one of your vans or buses to another?

Brotherhood Mutual recommends that you not make your vehicles available to other organizations. If you want to help them, consider aiding them financially in renting or chartering a vehicle from a rental agency, rather than running the risk of loaning or renting your own vehicle.

If you do choose to allow another party to use your vehicle, here are some important things to consider:

Vehicle Operation

• When you loan or rent your vehicle, you lose supervisory control over who may drive it and how it's operated and cared for.
• Don’t loan or rent your vehicle without first checking with your insurance agent and attorney to be sure the practice is permitted by your state's laws and whether there are any particular requirements or restrictions you need to consider.
• Even if you are permitted to loan or rent your vehicle to someone else, it’s important to verify with an attorney that the vehicle’s intended use will comply with state and federal laws governing vehicles which are operated for the purpose of transporting passengers.
• Outline your requirements to the user regarding who may operate your vehicle and under what conditions. You might consider checking that the intended driver has a valid license, a good driving record, and experience operating your type of vehicle.
• Your church or school will be held liable for damage caused by the negligent operation of your vehicle by others.
• Your policy covers your organization, its drivers, and other representatives, but may not adequately cover others outside your organization. The vehicle user may incorrectly assume he has complete protection under your policy for his liability.

Vehicle Damage

• If the user damages your vehicle, he most likely will expect you to turn in the damages under your insurance rather than pay the damages out of his own pocket.
• With this in mind, specify in writing who will be responsible for damage to your vehicle. If the other organization agrees to be responsible, it will have to purchase special vehicle damage protection. This coverage should be verified on a certificate of insurance given to you.

Vehicle Maintenance

• Don't loan or rent a vehicle that is not in top mechanical condition.

The information provided in this article is intended to be helpful, but it does not constitute legal advice and is not a substitute for the advice from a licensed attorney in your area. We strongly encourage you to regularly consult with a local attorney as part of your risk management program.

 

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