Temp agencies do not generally have a fleet of cars available to their staff and workers. If errands need to be run, or materials or goods need to be dropped off at a company or facility they will generally have employees perform these tasks in their own private cars. Since this is performed during business hours, the company can be held accountable for any damages, along with possible injuries, in the event that an accident occurs where the employee is deemed responsible.
If an employee of your company has a serious auto accident during the commission of work in their own vehicle or in a hired non owned vehicle, even in cases where they can use their personal insurance but it isn’t enough to cover the claim, your company will be responsible to pay the balance of any resulting settlements. These claims can be catastrophic and the cost of this insurance is quite low annually by comparison. Every business owner should seriously consider this coverage, and temp agencies, because they so often send candidates to different locations on a regular basis, run greater risks when it comes to automobile accidents.
What is hired automobile coverage?
Hired Auto coverage can either supplement or replace a car rental agency’s liability coverage. But because this insurance policy doesn’t cover physical damage to a rented vehicle, it is suggested that your company also purchase the rental agency’s physical damage coverage. The Hired Auto policy’s liability coverage protects only your company, and not the employee driving the rented vehicle, which means that the employee would still be personally liable for injuries or property damage to third parties.
It would be ashamed to lose your business due to inadequate insurance when it comes to having employees use their personal automobiles while at work. Regardless of the reason, there are serious risks involved in operating your business in this way, and no amount of money saved can offset the high price of litigation. Hired non owned auto coverages are usually added as endorsements on a General Liability policy. These types of coverage meet contract requirements for Commercial Auto coverage when the company has no vehicles titled in its name.