It’s rather common for staffing agencies to be vulnerable to potential automobile loss exposures that they may not even be aware of. While they may have taken all of the necessary steps to ensure that their owned vehicles used for business are properly covered in the event of an accident they may often overlook the potential losses that may arise from individual employees who operate their own personal vehicles for company business.
There are many situations that present the potential for owners to be held accountable for the actions of their employees while they are driving their own vehicles. Do administrative employees use their own vehicles to go to the post office or bank on the company’s behalf? Are employees sent to their offsite jobs in their own vehicles? Are they sent to pick up lunch or office supplies? Then the need for non-owned auto insurance is quite apparent.
Other exposures to consider
If the company’s representatives ever rents a vehicle while on a business trip or members of the sales force are provided with a car allowance for business use of their personal vehicles then these are areas that fall under the conditions of requiring non owned coverage. If an employee has an accident under any of these situations, that business can be held accountable and sued for damages. Basic business automobile policies only cover employees while they operate company owned vehicles to perform company business.
The only protection for these types of risk is non-owned and hired automobile liability coverage. This type of coverage will kick in if there is an accident and the company is found legally liable. Typically, an employee’s personal automobile insurance will provide primary insurance to both the employee and the business if the employee is using their own vehicle on company business.
However, there is the chance that charges will exceed the employee’s policy limit and would then be passed on to the company. Without a non-owned auto insurance policy the staffing company may be vulnerable to a potentially costly exposure.