Author: Meredith Smith

When renting a car, the rental company will typically ask if you’d like to purchase insurance coverage for the vehicle. It’s at this point when you have to ask yourself: Do my personal insurance policies provide the coverage I need, or should I purchase insurance through the rental car company?

Although standard auto insurance policies may extend to rented vehicles, you should never assume you are protected. Examining your own auto insurance policy will show you the types of coverage you already possess and where additional coverage may be needed. Since auto policies differ, it’s a good rule of thumb to contact your broker so they can help you navigate your policy and determine if you have the appropriate amount of coverage when renting a vehicle.

Examining Your Insurance Policies

When deciding whether or not your personal insurance will cover your rental car, there are a few different coverages you should have. If you answer yes to all of the following questions, you may not need to purchase additional coverage:

• Do you have liability, collision or comprehensive car insurance? Liability, collision and comprehensive insurance are the three main coverage options available when purchasing car insurance. Although it is not always required to purchase all three coverages, they can optimize your protection in the event of an accident.
  • Liability insurance provides coverage if you damage or injure another person or their personal property.
  • Collision insurance provides coverage if your vehicle is involved in a collision, either with another vehicle or object.
  • Comprehensive insurance provides coverage if your car is damaged by a variety of exposures such as theft, vandalism or natural disasters.
• Does your policy cover administrative fees, loss of use or towing charges? It’s always a good idea to check see whether your insurance company pays for—or provides a rider for—additional fees associated with rental cars. This coverage can be helpful if a car you rent is lost, stolen or damaged.
• Do you have a renters or homeowners policy that will cover your belongings if lost or damaged? Your homeowners or renters insurance policy covers your personal belongings from theft, fire or vandalism within your home. Policies often include off-premises coverage that can extend your coverage to outside your residence. Therefore, if personal belongings in your vehicle are stolen or damaged, your homeowners or renters insurance policy may be able to cover a percentage of your losses. Not all insurance carriers will extend coverage to protect personal belongings within your vehicle—always check with your broker to see what your renters or homeowners policy covers.

What Is Rental Car Insurance, and What Does It Cover?

Car rental companies provide additional coverage that is often used to supplement insurance you already possess. Rental car agencies offer four different coverage options:

1. Supplemental liability insurance: Most car rental companies need to have the minimum amount of liability coverage required by the state, but oftentimes it isn’t an adequate amount of coverage. If you have a personal car insurance policy with a high liability limit, you may not need additional protection.
2. Loss damage waiver (LDW)/collision damage waiver (CDW): This is not insurance per se, but rather a document that can alleviate your financial responsibility should your rental vehicle be damaged or stolen. This also includes loss of use coverage if the rental company charges you for the amount of time the car could not be used while being repaired, as well as other administrative fees the car rental agency assesses. The LDW may become void if the incident occurred from the driver of the rented vehicle exhibiting reckless behavior, speeding or the vehicle being driven on unpaved roads.
3. Personal accident insurance: This will cover the driver and any passengers within the rented vehicle for any medical bills caused by a car crash. This coverage is useful if you do not already have health insurance or personal injury protection insurance.
4. Personal effects coverage: This covers any personal belongings that are stolen from the rental vehicle. If you already have renters or homeowners insurance, this may already be covered under your policy.

The coverages offered are oftentimes the same as what you already have for your personal car insurance. Again, to avoid paying for coverage you already have, review your policy before renting a vehicle.

Does Your Credit Card Provide Rental Insurance?

Many reputable credit card companies offer rental insurance to their customers. To utilize this secondary form of coverage, you must put the total amount of the car rental on your credit card. In many cases, credit card companies will also require you to deny any insurance offered by the car rental agency in order to access their coverage. In the event that your rental car is in a covered incident, the credit card company will help cover costs of damage or theft up to a certain dollar amount. Various rental car fees can be covered by your credit card, but this can vary by provider.

Before purchasing any additional coverage through the car rental facility, call your credit card company to see if your card offers car rental insurance. Since most credit card rental insurance is classified as a secondary form of coverage, you may need to rely on your personal auto insurance coverage first.

Ask About Your Policy

Deciding on your rental car coverage can be a tricky endeavor. Before purchasing any extra coverage, talk to your insurance broker about your personal auto insurance policy and whether you may need to purchase any additional insurance. No one wants to pay more for their auto insurance, and you shouldn’t have too.

If you have any questions or are unsure if rental vehicles are covered under your policy, contact Dimond Bros. Insurance today.

[© 2020 Zywave, Inc. All rights reserved. This Know Your Insurance document is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice.]

While the military and hobbyists have been using unmanned aerial systems (UAS), better known as drones, for some time now, businesses are just starting to adapt the technology for their own uses. UAS are creating new opportunities—and new risks—for businesses to evaluate, and regulators and insurance carriers are scrambling to keep pace.

Regulation

UAS are still considered aircraft, and must be registered with the FAA unless a recreational UAS meets all of the FAA’s requirements to fall under the agency’s special rule for model aircraft. Here are the basic guidelines for registering UAS:

• UAS that don’t fall under the FAA’s special rule for model aircraft and weigh between 0.55 pounds and 55 pounds must be registered online. Commercial UAS that weigh more than 55 pounds must be registered by paper.
• Once registered, the UAS operator will receive a registration number that must be placed on all applicable drones.
• Registration is valid for three years. Failing to register may result in regulatory and criminal sanctions.

The FAA has separate regulations for recreational and commercial UAS, although some of the regulations are similar. The following is a list of key FAA requirements for recreational drones:

• Operators must maintain a visual line of sight with their drones, and keep them below a height of 400 feet above ground level.
• Drones cannot fly within 5 miles of an airport without the operator first notifying the airport and air traffic control tower. Operators must also yield the right of way to manned aircraft at all times.
• Drones cannot be flown over stadiums, sporting events or people who aren’t directly participating in the flight’s operation.
• Operators must follow all local UAS safety guidelines and keep their drones away from emergency response efforts at all times.

Here is a partial list of key FAA requirements for commercial drones:

• Commercial drone operators need a remote pilot airman certificate with a small UAS rating, or be under the direct supervision of a person who holds such a certificate.
• UAS must be inspected by the remote pilot before every flight.
• Operators must maintain a visual line of sight with their drones, and keep them below a height of 400 feet above ground level.
• Operators cannot fly the drone over anyone who is not directly participating in the drone’s operation.
• Drones may carry an external load if it’s securely attached and doesn’t adversely affect the controllability of the aircraft.

For more details on the FAA rules regarding the commercial use of drones, visit the FAA’s website.

Physical Loss: Beyond the Aircraft

With UAS, it’s often the loss of the payload—not the aircraft itself—that can be the most costly. One of the most widespread applications to date has been in unmanned aerial photography. Businesses in real estate, agriculture, filmmaking and insurance all have interests in surveying and photographing land, and the cameras used to do so can get expensive.

Because of the increasing affordability of drones, the payload often has a higher intrinsic value than the aircraft itself. Additionally, cameras and other payloads are usually slung below the aircraft, meaning that in the event of a hard or emergency landing, damage to the payload is almost certain.

Planning for Obsolescence

Technology itself could prove to be especially costly in the event of a UAS loss. The production of UAS is neither regulated nor standardized, which means there are a number of manufacturers in the market, each adhering to different standards. Many haven’t diversified, and should some technological advancement prove to be too costly for certain smaller companies to adopt, those companies could potentially go out of business.

Bankrupt or defunct manufacturers, coupled with a lack of industry standards for design, could mean that the loss of a relatively inexpensive motor today would instead be a total financial loss on the aircraft five years from now, when replacement parts are completely unavailable.

Casualty and Liability

As with conventional aircraft, a UAS crash could mean a hefty casualty claim. While the crash rate is actually relatively low with conventional aircraft, UAS are not subject to the tight maintenance requirements or the stringent operator regulations that make conventional commercial aircraft crashes so rare.

Eventually, mechanical failures and operator errors will likely result in crashes. Businesses, especially those that operate UAS in populated areas, should make sure they are adequately covered in the event of property damage or injury to a third party.

Theft and Fraud

A couple of benefits of UAS—their portability and advanced technology—can also prove to be great liabilities. Small UAS make easy and attractive targets to thieves, and the industry hasn’t developed many internal safeguards against stolen drones.

Broad Use

Another benefit that could become a potential liability is the flexibility of the technology—that is, a drone’s potential as a broad-use aircraft. In theory, the same UAS that photographs a parcel of land for a realtor on one day could be used to survey a hazardous chemical spill the following day.

This kind of flexibility offers a broad number of business opportunities, but each new opportunity brings with it attendant exposures that compound upon one another. Businesses will have to think through how they plan on using their UAS in order to make sure that their FAA authorization and their insurance cover each arena of commercial use.

Who Watches the Watchers?

Privacy represents one of the largest exposures with regard to drones. A highly maneuverable technology that gives remotely operated cameras virtually unfettered access to any location is bound to result in claims of privacy breach. What’s unclear, however, is how both the legal system and insurers plan to address these new exposures.

Currently, carriers exclude all privacy-related claims, but the increased exposure means that there’s a potential market for such protection. However, without some kind of precedent, it’s unclear how, if at all, the insurance industry will respond.

Understanding the Risks

As with all new technology, UAS create new opportunities and risks for businesses. Perhaps the greatest potential liability comes from the cyber risks posed by UAS. As technology advances, UAS will be able to remotely hack into computer systems and steal data.

In the ever-evolving world of agriculture, precision data has emerged as a game-changer, particularly in crop insurance. This innovative approach leverages advanced technology to provide farmers with more accurate, efficient, and beneficial insurance coverage. Here’s a closer look at the advantages of precision data for crop insurance and how it’s transforming the agricultural landscape.

1. Enhanced Accuracy in Coverage

Precision data allows for more accurate assessments of crop conditions and yields. Insurers can gather detailed information about a farm’s specific conditions by utilizing satellite imagery, drones, and other advanced technologies. This leads to more precise coverage that reflects the actual risks and needs of the farm, ensuring that farmers are neither over-insured nor under-insured.

2. Reduced Premium Costs

With more accurate data, insurers can better assess the risk associated with a particular farm. This often results in lower premium costs for farmers, as the insurance is tailored to the specific conditions and risks of their operations. Precision data helps eliminate the one-size-fits-all approach, leading to more cost-effective insurance solutions.

3. Increased Actual Production History (APH)

Precision data contributes to a more accurate calculation of a farmer’s Actual Production History (APH). By providing detailed records of crop yields and conditions over time, farmers can demonstrate their productivity more effectively. This can lead to better insurance terms and higher coverage levels, as insurers have a clearer picture of the farm’s performance.

4. Simplified Submission Process

The use of precision data streamlines the insurance submission process. Farmers can easily share data collected from precision agriculture tools with insurers, reducing the need for extensive paperwork and manual reporting. This saves time and minimizes the potential for errors in the submission process.

5. Improved Risk Management

Precision data enables better risk management by providing real-time insights into crop health and potential threats. Farmers can use this information to make informed decisions about their operations, such as adjusting planting schedules or implementing pest control measures. This proactive approach helps mitigate risks before they become significant, leading to more stable and predictable yields.

6. Secure Data Handling

With advancements in technology, the security of precision data has also improved. Farmers can trust that their data is handled securely and used solely to enhance their insurance coverage. This builds trust between farmers and insurers, fostering a more collaborative relationship.

7. Environmental Benefits

Precision data promotes sustainable farming practices by enabling more efficient use of resources. Farmers can optimize their use of water, fertilizers, and pesticides based on precise data, reducing waste and minimizing environmental impact. This benefits the environment and aligns with the growing demand for sustainable agricultural practices.

Conclusion

The integration of precision data into crop insurance is revolutionizing how farmers protect their livelihoods. By offering enhanced accuracy, reduced costs, simplified processes, and improved risk management, precision data empowers farmers to navigate the challenges of modern agriculture with greater confidence and efficiency. As technology advances, the benefits of precision data for crop insurance are likely to grow, further solidifying its role as a vital tool for farmers worldwide.

Dimond Bros. Insurance is proud to offer our Commercial Lines, Group Benefit and Farm customers with access to HR consultants to assist them in their business operations.  These HR consultants serve as valuable resources for navigating the pressing challenges facing employers today. This team, fields dozens of questions each day from employers seeking answers to their most pressing questions. Our data provides real-life insights into what is happening in HR and what types of workplace topics are on the minds of employers.

Here are the top five trending topics employers asked about in March 2025, our most recent month of data.

1. Benefits:  Examples – ACA reporting, midyear election change
2. Leave of Absence:  Examples – FMLA exhaustion, maternity leave
3. Discipline:  Examples – Furloughs, WARN Act
4. State Employment Law: Examples:  Labor law posters, paid sick leave
5. Wage and Hour: Examples:  Final wages, jury duty

If you find yourself in need of assistance and information on any of the above topics or other HR questions contact your Dimond Bros. Account Executive today to gain access to this free resource and tool available to our customers. 

Life insurance is an essential financial product that provides peace of mind and security to individuals and their families. As we navigate various life stages, understanding the most common types of life insurance can help you choose the right coverage for your needs. Here’s a quick overview:

1. Term Life Insurance:

– Definition: Provides coverage for a specified period (e.g., 10, 20, or 30 years).

– Benefits: Generally lower premiums; suitable for temporary coverage needs (e.g., raising children, mortgage).

– Consideration: No cash value; only pays out if the insured passes away within the term, although there are policy riders available that offer return of premium.

2. Whole Life Insurance:

– Definition: Permanent coverage that lasts for the insured’s lifetime, with consistent premiums.

– Benefits: Accumulates cash value over time, which can be borrowed against.

– Consideration: Higher premiums compared to term life; often used for estate planning.

3. Universal Life Insurance:

– Definition: Flexible coverage that allows policyholders to adjust premiums and death benefits.

– Benefits: Cash value component grows based on interest rates; offers more control over your policy.

– Consideration: Requires careful management to ensure it remains in force.

4. Variable Life Insurance:

– Definition: A permanent policy with an investment component; offers flexible premiums and death benefits.

– Benefits: Potential to grow cash value based on market performance; can adjust the investment strategy.

– Consideration: Investment risks impact cash value; requires financial knowledge and monitoring.

5. Final Expense Insurance:

– Definition: A smaller policy aimed at covering funeral and burial costs.

– Benefits: Simpler application process; provides peace of mind for loved ones.

– Consideration: Coverage amounts are typically lower than other life insurance types.

Choosing the right life insurance coverage is crucial for financial planning and protecting loved ones. Understanding these options will empower you to make informed decisions that align with your goals. For more information, please contact Mike Holley, Vice President of Life & Health for Dimond Bros Insurance. Mike.holley@dimondbros.com

Insurance carriers realize that offering additional lines of coverage to an existing customer is less expensive than trying to attract new customers. They also know that the more lines a given customer has, the longer they’re likely to stay with them.

While bundling policies is beneficial to insurance carriers, it is also highly beneficial to their customers. Similar to how bundling your personal home and auto policies may give you a discount, bundling your business policies can provide benefits way beyond cost savings.

Simplified Bookkeeping

Most businesses require a number of insurance policies in order to properly insure their operations, including:

• Workers’ compensation
• General liability
• Commercial property
• Professional liability
• Commercial auto
• Business interruption
• Cyber liability
• Directors and officers

Keeping up with that many policies isn’t an easy task for business owners. Therefore, bundling multiple policies with the same carrier simplifies things for bookkeeping purposes. Besides having fewer bills to keep track of every month, it also makes it easier come renewal time if the bundled policies renew at the same time each year.

Your HR department will also appreciate having one number to call when you’re hiring a new employee, have claims questions, are adding a location or making any other business decisions that impact your insurance.

Fewer Agents to Educate

Properly insuring your business requires explaining to your insurance agent exactly what your business does and the exposures that come with it. But without bundling your policies, you have more agents to educate, which takes time. The fewer agents you have to work with, the better equipped they’ll be to help identify and address your exposures.

Assurance That Your Policies Work Together

There may be circumstances when two of your business insurance policies have to work together. For example, you may assume that something not covered by your commercial auto policy would be covered by your commercial umbrella policy. However, many umbrella policies will only extend above an auto policy if the insurance company offering it has a specifiedfinancial strength rating. If your carrier’s rating falls below a certain grade, your umbrella policy may not cover an auto loss. That’s just one type of problem that could arise if you keep your policies under separate roofs, with separate agents.

Less Security Risk

When obtaining insurance, business owners are required to divulge sensitive personal information about their employees, as well as financial information about the business itself. When dividing your policies among multiple agents, you’re basically providing all that information to more people than you would have to if you’d bundled your policies with one agent. And in doing so, you’re increasing the risk of highly sensitive information ending up in the wrong hands.

Better Pricing

Bundling your business’s insurance policies allows your insurance professional to give you access to multiline discounts that help boost your bottom line. Contact Dimond Bros. Insurance to see if any of your insurers offer multiline discounts. We can give you estimates for bundling your policies with each carrier.