5 Ways to Protect Your Staffing Firm from Auto Risks
Do your employees ever drive vehicles not owned by your company? This can be common, especially in the staffing industry. There are countless situations in which employees drive un-owned vehicles for business purposes. Here are a few you might’ve seen:
- Driver is supplied to ABC Trucking Company
- Employee rents a vehicle while at a conference
- Home healthcare nurse drives from one patient’s home to another
- Summer intern picks up lunch for the office
- Staff accountant runs to the bank
- Temp uses your client’s owned vehicles for delivery
Any one accident in an employee’s personal auto, client’s vehicle or rented vehicle for business purposes can be costly. That’s where hired and non-owned auto coverage comes in.
What’s hired and non-owned auto coverage?
This insurance provides liability and property damage insurance for a vehicle that’s owned by an individual other than the company, but is used on a company’s behalf. It's intended for incidental accidents, such as those that might occur when you send an in-house employee on an errand. If that employee were to be involved in an auto accident and the limits of their own private policy are exhausted, your hired and non-owned auto coverage would pick up as excess where the other policy left off. Even if you don’t own any business vehicles (and thus don’t have an auto insurance policy), you can still purchase hired and non-owned auto liability as it’s typically added to your general liability or commercial package policy.
What else can I do to protect my company?
Whether you’re placing construction workers driving two-ton trucks or having your employees drive their own vehicles for sales calls, it’s up to you to ensure every possible safeguard is firmly in place. Aside from purchasing hired and non-owned auto coverage, there are additional ways to further protect your company.
- Verify your inside sales personnel are equipped with adequate personal auto insurance
- Run the Motor Vehicle Reports of your temporary employees in driving positions to ensure acceptable driving records
- Avoid placing youth drivers (under the age of 21)
- Review your client contracts, and see if you’re the party agreeing to assume all liability associated with your driver placements
- Check that clients have insurance coverage for the vehicles your employees are driving, and the coverage will apply to employees
For more information on proper coverage for vehicles, contact a member of the ‘A’ Team today.
- 4 Ways to Reduce Business Auto Risk
- Survey Says: Transportation Workers’ Comp Risks
- Pimp My Ride Insurance Style
- Liability E-Book
ABOUT THE AUTHOR