Staffing agencies often face unique risks when it comes to accidents involving temporary workers. Much of that exposure lurks on the road, particularly when temporary employees drive their own vehicles for work.
Hired and non-owned auto insurance is a critical safeguard for staffing agencies, filling the gaps where commercial or personal auto insurance policies fall short. If a temporary worker gets into an accident while making a delivery in their own car, this specialized staffing agency insurance coverage protects agencies against bodily injury and property damage stemming from the accident.
Philadelphia Insurance Companies (PHLY) offers tailored commercial Auto insurance for temporary drivers, combining hired and non-owned vehicle use into a robust policy designed to protect temporary staffing agencies from costly legal and financial risks.
Hired Versus Non-Owned Vehicles: What's the Difference?
Hired autos are vehicles that an agency or business rents, leases, hires or borrows for business purposes, such as vans for client transport or deliveries. While businesses control these vehicles during use, they do not own them.
Non-owned autos, on the other hand, typically refer to personal vehicles you do not own, lease, hire, rent or borrow, that are driven by employees or temporary staff for work-related tasks. This includes autos owned by your employees. Sometimes, these are used at the spur of the moment - for instance, when a temporary employee runs out to pick up office supplies.
Why Staffing Agencies Face Unique Auto Liability Risks
Unlike employees who drive company vehicles, temporary workers often rely on their personal auto insurance when they get behind the wheel. This exposes the temp staffing agency to multiple risks:
- Gaps in commercial auto and personal auto policies. Many temporary staffing insurance policies don't cover business-related incidents involving personal vehicles. Likewise, personal auto policies often exclude work-related incidents, leaving staffing agencies vulnerable to claims.
- Lack of control over vehicle condition and safety. Because staffing firms (and their clients) don't own hired and non-owned vehicles, they have no control over auto maintenance. Poorly maintained cars, vans, and trucks increase the risk of accidents.
- Potential liability after accidents. If a temporary worker causes a crash while on the job, their staffing agency could be held responsible for damages, medical expenses, and legal fees.
With the proper staffing agency insurance coverage in place, agencies can protect themselves against costly lawsuits and avoid breaches of contract with their clients.
How Hired and Non-Owned Vehicle Insurance Protects Staffing Agencies
PHLY strategically integrates hired and non-owned vehicle insurance for staffing agencies, helping them mitigate these liability risks. Benefits include:
- Non-owned auto liability coverage. This covers third-party bodily injuries and property damages if a temporary worker is involved in an accident while using a personal (non-owned) or hired vehicle for business purposes.
- Compliance with client contract requirements. Many staffing agency client-contracts require the staffing agencies to carry non-owned vehicle coverage before allowing temporary workers to drive on their behalf. PHLY's coverage meets these obligations.
- The bridging of gaps in personal policies. Personal auto insurance for temporary drivers may exclude business-related incidents, leaving staffing agencies and their clients vulnerable to uncovered claims.
With PHLY's policy, staffing agencies gain peace of mind, knowing they are protected against vehicle-related liability claims that could lead to costly judgments and expenses.
What's Not Covered By Hired & Non-Owned Vehicle Insurance?
While hired and non-owned auto insurance provides critical liability protection, there are a few things it doesn't cover:
- Personal vehicle repairs or replacement. If a non-owned auto is in an accident, these costs remain the driver's responsibility and should be covered under their personal auto insurance policy.
- Accidents during personal use. If a temporary worker is involved in an accident while commuting to work or running personal errands, liability insurance for drivers will not apply.
Additional steps staffing agencies can take to mitigate hired and non-owned auto risk:
- Encourage safe driving practices among employees, which can reduce accidents.
- Staffing agencies should ensure that employees fully understand their personal insurance responsibilities before taking on work-related driving tasks.
- Maintain records of personal lines auto insurance.
- Driver training (for anything more than incidental driving).
Why Agents Should Offer Hired and Non-Owned Auto Insurance to Staffing Agencies
Insurance agents play a vital role in educating their staffing clients about hired and non-owned Auto liability coverage. Highlights of PHLY's Hired and Non-Owned Auto Policy include:
- Individual Policy with separate limits (no aggregate limit)
- Occurrence form
- Primary noncontributory clause available
- Blanket additional insured
- Hired auto physical damage coverage available
Contact us today to learn more about how we can help staffing agencies mitigate risk.