Staffing companies often place employees in a variety of positions, and some of these jobs require workers to drive a company vehicle. If an accident occurs, though, it can be difficult to determine liability.
The Burden that Staffing Companies Take
Can people hold staffing companies accountable for a company vehicle accident? Who will pay for the damages associated with the accident? Investing in an owned auto liability policy can protect your clients from financial loss.
Staffing Companies Must Understand Owned Auto Liability
What is owned auto liability coverage, and how can it protect staffing companies? This type of staffing firm insurance is essential because it covers your clients’ vehicles if a collision causes damage. This coverage extends to employee drivers who are using company cars. In addition to standard damage or loss, policies typically include coverage for the financial impact of property damage, injury, or death that the driver of the vehicle may cause.
Determine the Scope of Employment
Although an owned auto liability policy is an excellent defense against liability, it’s important to discern who is liable for the damages in an accident involving an employee. To do so, staffing agencies will need to determine the scope of the driver’s employment. For example, if the accident happened while they were transporting job supplies, your client may be liable. Conversely, if the driver was in an accident during an unauthorized McDonald’s run, they may be responsible for damages because this is outside the scope of their employment.
Identify the Cause of the Accident
It’s also vital for your clients to identify the cause of the accident. If the other driver were at fault for the collision, neither your client nor your client’s employee would likely be responsible for covering the cost of damages in the aftermath. Instead, the staffing agency should be able to file a claim against the other driver’s insurance and avoid filing a claim against their owned auto liability policy — although insurers should still receive notification of the accident.
Document the Circumstances of the Crash
Documentation is another critical component of determining liability for an owned auto liability claim. Car accidents are often complex, and verbally describing the events can be challenging. Photos make it easier to demonstrate the events that led to a collision and determine who was at fault. Employees who drive company cars should receive training on photographing an accident scene. Photos should include the vehicle damage, any visible injuries, and — if it is safe — the road surrounding the vehicles.
Invest in Owned Auto Liability
Safe driving practices are the best defense for minimizing liability, but accidents can happen to the best drivers. That’s why staffing companies need to invest in an owned auto liability policy to ensure that they aren’t stuck with the bill for an employee’s accident. This type of coverage also protects your clients’ fleet of vehicles and offers the flexibility to insure multiple drivers under a single policy.
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 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.