Auto liability becomes a concern when businesses learn to trust drivers to deliver products on their behalf. Your staffing insurance clients may be facing the dilemma of purchasing a fleet of vehicles or requiring employees to drive their own. Depending upon the situation, both prospects can be equally risky.
Auto Liability Pros and Cons with Employees Who Drive
Here are the pros and cons of trusting employees with a company vehicle.
Staffing Insurance and the Pros of Providing Company Vehicles
As long as companies invest in sufficient automobile staffing insurance, there are many positives to purchasing company vehicles for employees. Here are some of the biggest perks for both parties.
Inexpensive Advertising
A business can substantially lower its marketing expenditures when employees regularly drive cars around town with the company logo. Permanent car wraps have become quite affordable, and people find them an excellent investment return.
Greater Control Over Employees
Workers who need reliable transportation are likelier to be late to work due to missing the bus or having car trouble. When they drive a company car, there is no excuse for not getting to work on time. They are also less likely to misbehave when potential clients see them getting out of a car with their employer’s name on it.
Lower Liability
Staffing hired & non-owned insurance covers the excess liability beyond what an employee’s personal policy covers in case of an accident. However, if a judge deems a vehicle unsafe, then the employer would be guilty of negligent entrustment for letting the employee drive it. Thus, allowing workers to drive their own cars poses financial risks when the vehicles are not in good shape.
The Cons of Providing Company Vehicles
Opting to purchase a fleet of cars also has downsides for employers and employees. Here are the main reasons for not entrusting employees with a company vehicle.
High Purchase and Maintenance Costs
New cars are expensive and depreciate quickly. On top of the costs to register and insure them, they also require regular maintenance and repairs. For these reasons, some companies prefer to invest in a good hired & non-owned auto policy rather than deal with the headache of keeping a fleet of cars in working condition.
Company Image
Some employers worry that their workers will behave unprofessionally when not under supervision. Once employees leave the company parking lot, knowing what they might do is impossible. It only takes one reckless or distracted driver in a company car to ruin a business’s image within a community.
Increased Liability
The employer is liable for damages if an employee is at fault in a car accident involving a company car. Helping clients discern if employees are fit to drive company vehicles is one way to help them decide whether to invest or allow workers to use their own cars.
Whenever employees drive for business, there is always a financial risk involved. Whether staffing agencies purchase company cars or let workers drive their own, be sure your clients purchase enough staffing insurance to mitigate these risks.
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.