When it comes to staffing firms, liability travels wherever employees do, whether they’re behind the wheel of a rental car, their own vehicle, or one belonging to a client. And while many firms carry hired and non-owned auto insurance, standard policies often overlook the unique risks inherent in staffing operations.
That’s where the right insurance partner can make all the difference. By asking the right questions and selecting policies tailored to staffing, agents can help clients avoid costly oversights in an industry where mobile workforces are the norm.
Client-Owned Vehicle Liability Is Often Uncovered
It’s common for staffing employees to drive client-owned vehicles. It’s a routine part of doing business, but also one of the easiest ways to end up underinsured.
It matters because staffing contracts frequently assign auto liability to the agency. Without a specific endorsement, a staffing firm could be on the hook for property damage or injury claims arising from an accident.
How to Avoid It
Confirm whether the policy includes coverage for client-owned vehicles. World Wide Specialty offers staffing-specific endorsements that protect both the agency and its client when an employee drives a client vehicle.
Rental Car Damage Isn’t Automatically Covered
“Hired autos” usually refer to vehicles rented for business purposes, but what many firms don’t realize is that hired and non-owned auto insurance often excludes physical damage to the rental itself, which is a costly oversight.
This gap becomes even more critical when you consider that over 60% of rental car damage claims result from causes beyond the renter’s control, with the average repair bill exceeding $1,100. That kind of surprise expense can hit hard if it wasn’t planned for.
How to Avoid It
If your clients’ employees frequently rent cars, recommend adding a hired car physical damage endorsement. World Wide Specialty offers this as part of its staffing-focused HNOA package, helping avoid out-of-pocket rental repair costs.
Employee-Owned Vehicles Pose Dual Risk
Staffing firms also face risk when employees use personal vehicles for business — think site visits, home care, or errands. While hired and non-owned auto insurance may cover third-party injuries or damage, it won’t cover the employee’s own vehicle. Worse, if the employee’s insurer wasn’t aware of the business use, the claim may be denied altogether.
How to Avoid It
Make sure your clients understand this limitation. Hired and non-owned auto insurance isn’t a replacement for full commercial auto coverage and should include clear terms for handling personal vehicles.
What Agents Should Watch For
To proactively protect staffing firms, agents should dig a little deeper using the questions below.
- Will employees ever drive client-owned or rented vehicles for business use?
- Are employees using their personal vehicles for everyday operations?
- Does the policy include hired car physical damage?
- Do contracts require the staffing firm to assume auto liability on clients’ behalf?
World Wide Specialty Programs offers staffing-focused perks that include the following.
- No deductible and no aggregate limit
- Occurrence-form coverage
- Blanket additional insured status
- Optional hired car physical damage endorsement
Why Staffing-Focused Hired and Non-Owned Auto Insurance Matters
Generic hired and non-owned auto insurance policies don’t always account for the realities of staffing workforces. From employee use of client vehicles to gaps in rental car and personal vehicle coverage, generic policies rarely offer the protection firms actually need.
World Wide Specialty Programs fills these gaps with underwriting designed for how staffing firms work in the real world. It’s smarter coverage built to keep your clients compliant, protected, and confident on the road.
Contact us today to learn how World Wide Specialty Programs can help you deliver hired and non-owned auto insurance that meets the staffing industry’s evolving needs.
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.