A staffing organization faces a unique set of challenges. Because it often enters into a co-employment contract with its client company, the staffing firm becomes responsible not only for the actions of its own employees but for the actions of employees placed within the client company.
This sort of dual responsibility leads to a new set of potential liability issues. One of the coverage areas that easily can be overlooked is non owned automobile insurance. Doing so can lead to potentially devastating consequences for a staffing firm.
An All Too Common Scenario
If you can imagine a situation in which your employee, or the employee of the client company, uses a personal vehicle or rental car to conduct business on behalf of the company, you should consider adding non owned automobile insurance. Something as simple as an employee delivering a document across town or picking up lunch for a staff meeting qualifies as business use of a personal vehicle.
Standard business auto policies provide coverage for damages or bodily injuries that occur as the result of an accident involving a company owned vehicle, but they do not cover the use of personal or hired cars. A non owned automobile insurance endorsement to the business auto policy is an easy solution and includes coverage of:
- Damages or personal injury caused to a third party by a personal or hired vehicle driven by your employee
- Legal fees in the event of a lawsuit
Make sure your staffing firm is protected on all fronts. Consult an experienced broker or agent today.