Protect Yourself
An Internet search for 15-passenger van accidents reveals a history of tragic news reports as well as personal injury law firms that specialize in large van rollover litigation.
Safety and liability issues with large vans converge on several fronts. First, these vans are rented to carry large numbers of people, which magnifies the potential for injuries from an accident.
Second, 15-passenger vans historically have a high incidence of rollovers due to their high center of gravity and large passenger load. A full van places an inordinate amount of weight behind the rear wheel, which further affects driving characteristics. As of 2004, the National Highway Traffic Safety Administration (NHTSA) has required electronic stability control systems on all new 15-passenger vans. This has reduced but by no means eliminated the rollover possibility.
Driving behavior plays a key role. Most van renters - administrators for schools, churches or sports teams - are not experienced 15-passenger van drivers. Combine that with a long drive and 14 people distracting him and it could be a recipe for disaster.
One operator got hit with a lawsuit after a van overturned on black ice. A passenger was paralyzed. The insurance company settled for $5 million. The operator was lucky not to lose the business, instead paying three times the insurance premium for a tenth of the coverage. "This is the first year we're back to paying close to what everybody else is paying," says the operator. "We've had that chain around our necks for a long time."
It is paramount to protect yourself. Irani recommends carrying a minimum of $10-$15 million in umbrella liability coverage to rent large vans. Vercollone self insures with a very high limit on liability on large vans.
Also, check the laws for liability and insurance coverages in surrounding states, as their rules will come into play if your van gets into an accident out of state.
Ideal Business for Van Rentals
Irani likens regular car rentals and passenger van rentals to fast food and a full-service restaurant. Both serve meals, but they have different business models.
These operators say success in the van rental market comes with specialization, which allows them to focus on the peculiar issues inherent in van purchasing, remarketing, maintenance and liability.
"If you're going to do it, you have to make this your thing," says Laguana. "You have to decide what kind of business you're running and focus on it."