Auto insurance is considered important for virtually all businesses, whether they keep a company car or not. If a staffing agency uses its own motor vehicle, commercial auto insurance serves to protect against losses incurred through an accident that happens while travelling for work or while doing work for a client. A staffing agency insurance profile should include non-owned or hired auto liability if temporary employees, or any employees, use their own car or a rental vehicle for work.

A Breakdown of Commercial Auto

Liability addresses costs associated with damage to objects and with harm to people. Coverage for physical damage to autos is further broken down to comprehensive insurance and collision insurance. Comprehensive covers losses due to theft, vandalism and some natural disasters. Collision kicks in when a vehicle is hit by another vehicle, when it strikes an object and is damaged or when it is overturned.

Non-Owned or Hired Auto Liability

As part of a staffing agency insurance package, this policy protects against lawsuits if an employee gets into an accident while driving a personal or rented vehicle on company business. Driving for the company need not be a regular or required part of the job for auto insurance coverage to make sense. Many accidents occur when an employee runs the odd errand or goes to pick up lunch. Even in the absence of litigation, an employees personal policy may not pay out enough to cover damages. With the proper auto insurance, it may be easier to bridge the gap if the agency is held liable.


photo credit: Georg Sander (GS1311) cc