Staffing agencies that own and operate fleets handle more than daily logistics. They coordinate rotating drivers, move people from site to site, and ensure vehicles stay on the road safely. Because standard general liability policies don’t cover auto exposures involving owned cars, owned auto liability insurance is vital.
Typically provided through a business auto policy (BAP), this coverage is central to any staffing fleet insurance strategy. It doesn’t just guard against repair bills or lawsuits. It also helps agencies stay compliant, maintain business continuity, and build trust with clients who rely on them for punctual, safe transportation.
Why Do Staffing Fleets Face Higher Auto Liability Risks?
Unlike most businesses that use company cars for occasional errands or executive travel, staffing firms often depend on fleets to move temporary workers between job sites.
These vehicles are often driven by employees with different experience levels across shifts and operate under tight schedules. Add in the wear and tear that comes with high mileage, and the exposure adds up quickly.
When firms own the vehicles, they also assume responsibility for the driver’s actions and the vehicle’s condition. So, if an accident happens, the agency is accountable under vicarious liability laws, especially if the driver was acting within the scope of employment.
This risk is real. In 2023, the U.S. Bureau of Labor Statistics reported that transportation incidents were the leading cause of workplace fatalities. It’s a sobering reminder that for staffing firms constantly on the move, the road presents a significant, ongoing source of liability.
Owned auto liability insurance helps staffing firms address these exposures directly. It provides coverage that general liability policies specifically exclude, namely, claims tied to a company vehicle’s use or ownership.
What Does Owned Auto Insurance Cover for Staffing Firms?
Owned auto liability insurance is a standard component of a BAP for staffing firms that own their vehicles. While coverage varies by carrier and jurisdiction, it typically includes:
- Bodily injury or property damage liability if an employee causes an accident using a company-owned vehicle
- Optional comprehensive and collision coverage for physical damage to the firm’s owned vehicles
- Medical payments for injuries to occupants in the insured vehicle
- Uninsured and underinsured motorist (UM/UIM) coverage, in case the at-fault driver lacks adequate insurance
Liability coverage is mandatory, with different minimum limits across states. Higher limits are strongly recommended for commercial operations like staffing fleets. Additional components like physical damage and UM/UIM are usually added by endorsement and vary by carrier and state law. Agents should verify what’s included, as general liability policies will exclude anything tied to a company vehicle’s use or ownership.
For staffing firms, this coverage is foundational to fleet risk management. Without it, agencies risk gaps that could lead to uncovered claims or damaged client relationships.
Building Smarter Fleet Insurance Programs for Staffing Firms
Once a staffing firm operates five or more vehicles, it usually makes sense to switch from individual auto policies to a fleet-rated insurance program. These programs consolidate coverage, reduce cost, and offer administrative efficiency. Some also allow any licensed employee to drive any insured vehicle, although carriers often require motor vehicle record checks, driving experience, and clean records for eligibility.
That said, risk management remains a critical part of the equation. Agents working with staffing firms should still focus on:
- Driver selection and screening, especially when turnover is high
- Loss history and accident trends
- Clearly documented garaging locations and overnight storage practices
- Route and vehicle use classifications, including who drives what, where, and why
High-value vehicles (typically those exceeding $100,000 in value), vans used for transporting employees, or vehicles garaged in high-risk locations may trigger stricter underwriting requirements. Carriers may request supporting documentation such as driver rosters, vehicle usage logs, employee handbooks, and current loss runs.
World Wide Specialty Programs works with agents through every step to navigate these submission requirements and ensure that policies reflect how staffing fleets operate in real life.
Why General Liability Isn’t Enough
Some firms mistakenly believe general liability insurance extends to company-owned vehicle operations. It doesn’t. Those policies specifically exclude claims arising from the use, operation, or maintenance of owned autos.
Only a properly structured business auto policy with owned auto liability coverage addresses:
- Third-party injuries or property damage caused by employees operating company vehicles
- Damage to company-owned vehicles (if physical damage coverage is added)
- Injuries to passengers or employees inside the vehicle
- UM/UIM incidents involving uninsured or underinsured motorists
Thus, this protection is especially important for agencies that transport workers daily, using multiple vehicles across multiple sites.
World Wide Specialty’s commercial auto policies are built to support this kind of fast-paced, people-focused operation. Coverage is flexible, scalable, and designed to grow with the agency’s fleet operations.
Help Your Clients Protect Their Fleet
As an agent, your staffing clients count on you to help them identify fleet risk and secure the right protection. If they own vehicles or transport workers as part of their services, general liability alone won’t protect them. They need a business auto policy with owned auto liability coverage tailored specifically for staffing operations.
Partner with World Wide Specialty to deliver staffing fleet insurance solutions that protect your staffing clients, their people, their vehicles, and their reputations.
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.