Placing employees in a variety of industries may require some of them to drive a client’s company vehicle. Your staffing agency needs to have the right auto policy in place to cover them in the event of an accident. Here is an overview of the differences between commercial auto and hired and non owned auto insurance.
Any business that owns their own company vehicles needs a commercial auto policy. Like personal auto insurance, most cover your auto liability, physical damage, medical expenses and uninsured motorists.
Hired and Non Owned Auto
Since the staffing firm doesn’t own the client’s vehicle the employee is driving, you need a hired and non owned auto policy. Their commercial auto policy may not cover the temporary employee in the event of an accident.
An employee driving their personal car for business work may not be covered. As such, they may not want to drive for the client unless you have the right coverage.
Most staffing firms benefit from having a hired and non owned auto insurance policy. Since your employees are not employees of the client they work for, your business needs the additional coverage not included in a commercial auto policy. Accidents happen, make sure your business has the right policy in place when it does.