Hertz 2008 Annual Report Download - page 48

ITEM 1. BUSINESS (Continued)
damage, and $50,000 in respect of all other losses, in Europe. For our international operations outside of
Europe, we also maintain property insurance coverage with unaffiliated carriers in such amounts as we
deem adequate in light of the respective hazards, where such insurance is available on commercially
reasonable terms.
Our rental contracts typically provide that the renter is responsible for damage to or loss (including loss
through theft) of rented vehicles or equipment. We generally offer an optional rental product, known in
various countries as ‘‘loss damage waiver,’’ ‘‘collision damage waiver,’’ ‘‘theft protection’’ or ‘‘accident
excess reduction,’’ under which we waive or limit our right to make a claim for such damage or loss. This
product is not regulated as insurance, but it is subject to specific laws in roughly half of the U.S.
jurisdictions where we operate.
Collision damage costs and the costs of stolen or unaccounted-for vehicles and equipment, along with
other damage to our property, are charged to expense as incurred.
Other Risks
To manage other risks associated with our businesses, or to comply with applicable law, we purchase
other types of insurance carried by business organizations, such as worker’s compensation and
employer’s liability (for which we, through contracts with insurers domestically, bear the risk of the first
$5 million of loss from any occurrence), commercial crime and fidelity, performance bonds and
directors’ and officers’ liability insurance from unaffiliated insurance companies in amounts deemed by
us to be adequate in light of the respective hazards, where such coverage is obtainable on commercially
reasonable terms.
Governmental Regulation and Environmental Matters
Throughout the world, we are subject to numerous types of governmental controls, including those
relating to prices and advertising, privacy and data protection, currency controls, labor matters, charge
card operations, insurance, environmental protection, used car sales and licensing.
Environmental
The environmental requirements applicable to our operations generally pertain to (i) the operation and
maintenance of cars, trucks and other vehicles, such as heavy equipment, buses and vans; (ii) the
ownership and operation of tanks for the storage of petroleum products, including gasoline, diesel fuel
and oil; and (iii) the generation, storage, transportation and disposal of waste materials, including oil,
vehicle wash sludge and waste water. We have made, and will continue to make, expenditures to comply
with applicable environmental laws and regulations.
The use of cars and other vehicles is subject to various governmental requirements designed to limit
environmental damage, including those caused by emissions and noise. Generally, these requirements
are met by the manufacturer, except in the case of occasional equipment failure requiring repair by us.
Measures are taken at certain locations in states that require the installation of Stage II Vapor Recovery
equipment to reduce the loss of vapor during the fueling process.
We utilize tanks worldwide, approximately 590 of which, at December 31, 2008, are underground and
approximately 1,940 of which are aboveground, to store petroleum products, and we believe our tanks
are maintained in material compliance with environmental regulations, including federal and state
financial responsibility requirements for corrective action and third-party claims due to releases. Our
compliance program for our tanks is intended to ensure that (i) the tanks are properly registered with the
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