In Farmers Ins. Exch. v. Enterprise Leasing Co., No. 100082 (Apr. 21, 2011), the Virginia Supreme Court held that a self-insured rental car enterprise that paid damages caused by its renter contractually was entitled to indemnification where supplemental liability protection was declined. Id. at 5-12. The renter was at fault for a car accident in Fairfax County, Virginia; but refused to reimburse Enterprise Leasing Company for it. Id. at 3.
Farmers also held that the renter’s own car insurer was liable to reimburse Enterprise for what it paid on the car accident due to its insured’s negligence. Although his insurance policy recited that “other insurance” was primary, “self-insurance” did not constitute “other insurance” – indeed was “assurance” that was the “antithesis of insurance”. Id. at 11-14.
