Staffing owned auto liability is a necessary insurance coverage to have when employing workers to drive for business. Staffing agencies provide companies with the needed personnel to thrive in the modern world. Every week, millions of temporary workers ease employment issues. While different industries have different needs, agencies must consider their potential liability. When the work involves driving, staffing-owned auto liability provides a vital layer of protection.
Who Needs Staffing Owned Auto Liability?
Any time any person drives a vehicle, it comes with the inherent risk of an accident. Many factors play into safely arriving at a destination, from speeding to distracted driving. While many employees at a staffing agency need to get themselves to the job site, some jobs themselves require significant time traveling.
If an agency needs to fill a healthcare caregiver role, how will that person pick up prescriptions or buy groceries? Typically, it requires driving a personal car for work-related functions. Sometimes, an agency may need to rent vehicles for workers to complete the necessary tasks. Either way, a staffing agent may need more coverage.
Generally, a business auto policy only covers employees driving company-owned vehicles. For people using personal vehicles for business, the person’s auto insurance provides coverage in case of an accident. Unfortunately, the staffing agency may still face liability issues. A company can get critical damage protection with staffing-owned auto liability coverage.
What Benefits Does This Coverage Provide?
An employee injured on the job, whether at work or driving a vehicle, equates to liability concerns for the company. Depending on the situation, it may mean facing expensive legal fees and paying for medical bills, and possibly costly settlements. By having staffing owned auto liability, a staffing agency gains peace of mind that any expenses over the employee’s personal auto insurance will not have to come out of pocket.
Typically, this policy does not cover the costs of repairs to a rented or employee-owned vehicle. Additionally, any property damaged during transportation will not get covered either. Staffing-owned liability only takes effect if an accident happens while working. If a worker suffers a car accident when commuting or running personal errands, they must rely on their personal insurance.
How Does Staffing Owned Auto Liability Work?
Also called hired and non-owned auto insurance, it works as secondary coverage. After an incident, the primary coverage gets applied first. If it exceeds the limits, then staffing-owned auto liability kicks in. Similarly, the initial coverage on a rental car happens before a staffing agency’s liability insurance. Considering the price tag of an accident, the cost of this insurance does not compare.
Like other types of insurance, many factors affect how much a company will pay for coverage. Key drivers include the number of employees, how often they must drive, employee demographics, the number of miles driven, and the company’s location.
Staffing agencies have nuances that make the industry unique. Adding staffing owned auto liability helps a business better navigate auto liability cases.
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.