It’s not unusual for staffing agency employees to drive their own cars for business purposes, either for the agency or for a client. Don’t mistakenly assume that all auto liability will be covered under an employee’s personal policy. In today’s increasingly litigious climate, claims for injury or damages are often filed against multiple sources. Staffing agencies can be liable for the performance of their employees’ while on the job, i.e. while driving, and for negligence associated with an employee’s operation or use of a vehicle. Hired non-owned auto insurance fills gaps in coverage that are not included in a personal auto policy.
What Are the Risks Associated With Employees on the Road?
The limits of liability on personal auto insurance can be quite low. If your employee has opted for a bare-bones policy, then the staffing agency could be sued for damages that exceed the policy limits. An accident involving multiple cars and serious injuries can easily become a costly situation. Injuries to a passenger in the employee’s vehicle also may not be covered by a personal policy, making the staffing agency liable for those medical costs as well. Hired non-owned auto insurance is an easy solution to removing the risk involved with employees on the road.
Here are some additional ways to ensure safer driving situations.
Know which employees are driving personal vehicles for work assignments.
Verify that all drivers have an up-to-date license.
Check driving records and proof of insurance when hiring new employees.
An insurance provider that specializes in staffing agencies can guide you in selecting the right hired non-owned auto policy for your company.
There Is no great mystery why you need auto insurance if you own your vehicle, whether a personal or company car. However, not many business owners give sufficient thought to hired non-owned auto insurance and what it can mean for their business. You may have an entire fleet of cars covered with a comprehensive insurance policy, send an employee out to bring back lunch in a hired car when there are no other available cars, only to find that an accident happens. This is also a concern if your employees travel for business frequently and need to rent cars.
Policies for hired non-owned auto insurance vary from those that cover cars your company owns. You may not be able to cover damage to the car itself, but you can be insured in case of bodily harm of an employee and damage to property or merchandise within the car. This can be particularly important if you use a hired car for deliveries of valuable items.
Speak to an insurance agent about hired non-owned auto insurance for your business. The kind of insurance you get depends on how many hired vehicle you use and their purpose. Even if hired cars are used only for business trips, don’t neglect this type of insurance coverage, because you can’t control what does not happen on the premises.