Will Mann

An auto dealership rented two large tents for its summer sales event. A large mobile grill also was rented for each weekend of the month-long event to be used for customer appreciation cookouts. The rental store owner agreed to bring the grill out each Friday and pick it up each Monday, saving the dealership a little money. This also provided an opportunity for the rental store owner to inspect the tent each week, as it would be in place for more than 30 days.

In the last week of the month-long rental, a strong storm came through the area and blew down both tents. One tent was completely destroyed and there was some minor damage to the other. The new cars in the path of the wind-driven tent did not fare well. There were numerous vehicles with large dents, scrapes and broken glass. The dealership filed a claim against the rental store for the damages.

Did the rental store’s insurance cover the damages to the new vehicles? No, the insurance company pays for damages for which the insured is legally liable. The rental store, having correctly installed, secured, and inspected the tents throughout the event, wasn’t liable for an unfortunate act of nature. The rental store along with setting up the tents correctly, also had a strong rental contract in place that supported the insurance company’s stance that the rental store wasn’t in any way responsible. Sometimes bad things happen, but that doesn’t mean you are responsible. Keep your tents secure and stay safe.

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This item, provided by ARA Insurance, Kansas City, Mo., is the story of a real-life insurance claim involving a rental store and is intended to help readers better understand and manage risk. For more safety and risk management information, customers of ARA Insurance can log on to ReSource. Access is free, so if you haven’t signed up yet, contact your agent or call 800-821-6580.