Staffing firms often face a dilemma: how to protect themselves when employees use rental cars or their own vehicles for work. The answer lies in hired and non-owned auto insurance.
As an insurance agent, your role is to help staffing agencies navigate the complexities of hired and non-owned insurance coverage so they can focus on their business without worrying about unexpected liabilities.
What Is the Main Distinction Between a Hired Auto and a Non-Owned Auto?
First, let’s break down the difference between hired autos and non-owned autos in the context of staffing firms.
A hired auto is any vehicle that a staffing firm rents, leases, or borrows for business purposes. A staffing firm typically controls but doesn’t own these vehicles.
On the other hand, non-owned autos refer to vehicles that are not owned by the staffing firm but are used for business purposes. They often include personal vehicles that employees or temporary staff members own.
Although the staffing firm doesn’t own these vehicles, it can still be liable for any accidents or damages that occur while the driver carries out company business.
Understanding these distinctions is critical, as each type of insurance addresses different scenarios.
When Do Staffing Firms Need Hired and Non-Owned Auto Insurance?
Staffing firms need hired and non-owned auto insurance in various circumstances.
Consider a scenario where a temporary worker drives a rental car to a job site. If an accident occurs, the staffing firm could be responsible for damages. Similarly, if a staff member uses their own car to meet a client and gets in an accident, the firm could face liability issues.
In both cases, hired and non-owned auto insurance provides the necessary coverage to protect the firm from financial loss.
Reducing Staffing Agencies’ Risks With Proper Auto Insurance Coverage
According to the National Safety Council, motor vehicle crashes cost employers over $72 billion annually. Those costs include medical care, liability, lost productivity, and property damage. This statistic highlights the significant financial risks associated with auto-related incidents, making it crucial for staffing firms to secure adequate coverage.
One risk-mitigation strategy is to combine hired and non-owned auto insurance. This combination ensures coverage for the firm, regardless of whether the vehicle is rented, leased, or personally owned.
Encouraging clients to implement clear policies regarding vehicle use can also mitigate risks. For example, advising staffing firms to require employees to carry their own auto insurance and to verify that it meets certain standards can further protect the company.
Ensuring Auto Liability Protection for Staffing Firms
As an insurance agent, you play a vital role in helping your clients select the right staffing hired and non-owned auto insurance coverage for their specific needs.
By guiding them through these complex options, you provide peace of mind and financial security for their business operations.
Call us today to discuss how we can help you offer the best hired and non-owned auto insurance solutions for staffing firms.
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.