Because staffing agencies supply workers for a variety of roles, they must have insurance policies that cover a wide range of scenarios. For example, if temporary employees have to drive as part of their responsibilities, the staffing agency needs owned auto liability to protect itself from litigation in case of employee accidents. As an insurance agent, you can help your clients in the staffing industry find the right coverage by understanding their unique challenges.
What Is Owned Auto Liability?
Clients may know this type of policy as “commercial auto insurance,” as the two names are interchangeable. What’s most important is that the insured understands how the coverage works.
As the name implies, commercial auto insurance only applies to commercial vehicles. A business must own the insured van, truck, or car; employees must primarily use these vehicles for work.
Liability is a huge concern for staffing agencies, as accidents can lead to litigation from customers and affected third parties. Fighting a civil suit can quickly become expensive with the long list of possible costs, from attorney’s fees to court costs and settlements.
Additionally, many states require businesses to maintain some degree of automotive insurance. Failure to adhere to local regulations may lead to fines or other penalties.
Staffing company insurance also protects employees. If the driver gets injured in the accident, the auto policy should cover medical bills.
As an insurance agent, you can help your staffing agency clients by customizing their coverage. While accidents are a reasonable concern, other dangers can cost businesses, including natural disasters, vandalism, and theft.
Replacing or repairing a vehicle can be expensive, and staffing agencies may struggle if required to pay out of pocket. Insurance takes on the burden, ensuring companies don’t have to allocate funds from other areas of the budget.
What Are the Types of Auto Liability in Staffing?
There are two types of auto liability policies: those for business-owned vehicles and those for employee-owned vehicles. The first, owned auto liability, is relatively straightforward. While employees may operate these vehicles, the business owns them and pays for maintenance, registration, and other costs.
The second is more complicated. These policies, called non-owned liability insurance, cover employee-owned vehicles but only during business use. Drivers must maintain personal insurance, with non-owned liability insurance acting as supplemental coverage. These policies may also cover cars owned by customers and driven by employees for work.
Key Takeaways
Staffing agencies must meet various client needs, putting them in delicate situations should employees commit errors. With your in-depth knowledge, you can offer tailored coverage that protects their assets, employees, and reputation.
Owned auto liability coverage is an essential part of the package, as many jobs require visiting work sites and meeting with clients. You can even help the insured save money by explaining the many factors that impact insurance rates, such as business size, industry risks, and vehicle type, empowering them to make business decisions with premiums in mind.
About World Wide Specialty Programs
For the last 50 years, World Wide Specialty Programs has dedicated itself to providing the optimal products and solutions for the staffing industry. As the only insurance firm to be an ASA commercial liability partner, we are committed to that partnership and are committed to using our knowledge of the industry to provide staffing firms with the best possible coverage. For more information about Staffing Professional Liability Insurance or any other coverage we have available to protect your staffing business, give us a call at (877) 256-0468 to speak with one of our representatives.