Insurance Coverage and Related Requirements
January 1, 2012
|Insurance programs for state drivers|
|The following insurance programs relate to state drivers and vehicles driven on official state business::|
Self-Insurance Liability Program for auto liability claims.
The Washington Self-Insurance Liability Program (SILP) is used to pay tort claim judgments and settlements arising from general liability and vehicle liability for which the state is found to be wholly or partially negligent.
The SILP provides coverage for all state agencies, boards, commissions, community colleges, and universities with the exception of the University of Washington and the Washington Department of Transportation (WSDOT), Marine Division.
The Department of Enterprise Services, Office of Risk Management:
The SILP provides auto liability coverage for state owned and rented vehicles driven on state business in the United States and Canada.
More information is available online at: www.ofm.wa.gov/rmd/default.asp.
Workers’ compensation for job-related injuries and illnesses.
The Department of Labor and Industries (L&I) administers a “no-fault” workers’ compensation program (Title 51 RCW, Industrial Insurance). The workers' compensation program provides:
For more information about workers’ compensation or filing an “on-the-job” injury or illness claim, visit L&I's website at: http://www.lni.wa.gov/claimsins/default.asp.
January 1, 2012
|Insurance requirements and coverage for state drivers|
State employee drivers - state vehicles (agency owned or state motor pool).
State employee drivers - privately owned vehicles (POVs).
|12.40.20.b||All state drivers - commercially rented vehicles.|
Rentals from the state contract vehicle rental company.
In all cases, contract language specifically requires that state rental car drivers be authorized by the agency head or authorized designee to rent and operate all rental vehicles.
Liability and loss damage waiver (LDW) insurance coverage is generally provided under the base rate charged to state agencies that rent vehicles through the state’s vehicle rental contract administered by the Department of Enterprise Services. (Insurance coverage is not covered under the base rate for some specialty vehicles rented from the contracted company.)
LDW coverage provided under the base rate includes:
Review rental contract agreements for any restrictions (i.e., age, in the case of student drivers).
More information on rental vehicle contracts is available online at: http://www.ga.wa.gov/travel/rentvehicles.htm.
Rentals from non-state contract vehicle rental companies.
Depending on the current state of Washington corporate travel card agreement, LDW coverage may be procured for a rental vehicle. For this reason, it is recommended that non-state contract vehicle rentals be placed on the state of Washington corporate travel card to take advantage of possible vehicle insurance coverage.
Check the most current coverage terms for the state corporate credit card online at: http://www.ga.wa.gov/Purchase/index.html.
It is a business decision on the part of each agency to determine the need or advantage of purchasing LDW coverage when renting a vehicle that is not included under the state’s rental contract. If liability coverage is not procured on a rental vehicle, the SILP can provide coverage for third party liability claims, but will NOT cover damage to the rental vehicle.
Agencies are responsible for all repair costs to a rental vehicle if LDW coverage is not acquired on the vehicle. The Office of the Attorney General may represent the state driver if a lawsuit was filed against the operator.
Passenger van rentals from state/non-state contract vehicle rental companies.
|Refer to van use requirements in Subsection 12.60.10.g and van rental/lease restrictions in Subsection 12.60.10.h.|
Contractor drivers - state vehicles.
Most Commercial Auto or Business Auto Liability insurance policies contain "Other Insurance" provisions in Section IV - Business Auto Conditions which provide that "For any covered "auto" you don't own, the insurance provided by this Coverage Form is excess over any other collectible insurance." In order to ensure auto coverage for all tiers for borrowed autos from the state, contractor/consultant agreement auto insurance provisions should provide for coverage as follows:
Provisions for liability insurance and industrial insurance must be included in agency contracts.
Contractor drivers - privately owned vehicles (POVs).
In situations where contractors are required to use POVs in performance of their contracted duties, agencies are required to:
Student drivers - state vehicles and privately owned vehicles (POVs).
The agency head or authorized designee must authorize students to use state vehicles and POVs for official state business. Prior authorization is generally a condition in the state's commercial rental contracts.
Rental contract language generally excludes drivers under the age of 25. Consult the appropriate rental contract agreement for policy restrictions and exclusions that may apply to student drivers using commercially rented vehicles on official state business.
L&I’s employment standards restrict youths under the age of 18 from operating vehicles for business purposes. Refer to L&I’s website at: http://www.lni.wa.gov/WorkplaceRights/TeenWorkers/.
Volunteer drivers - state vehicles and privately owned vehicles (POVs).
The agency head or authorized designee must authorize volunteers to the use state vehicles and POVs for official state business. Prior authorization is generally a condition in the state's commercial rental contracts.
Agencies should contact L&I to inquire about workers' compensation insurance coverage for personal injuries of volunteers or other non-paid operators of motor vehicles used for official state business.