If your staffing firm owns a vehicle or fleet of vehicles, you probably already have a commercial auto policy that will protect you in the case of an accident while in the use of an employee. However, is your firm properly protected against damage or injury as a result of a vehicle you are renting or do not own? This is where hired, non-owned auto insurance comes into play.
A vehicle that is borrowed or rented by your firm for employee use is considered a hired or non-owned vehicle. This includes a vehicle owned by the employee that is used in a business capacity. In the case of an accident using a hired or non-owned vehicle, a standard commercial vehicle insurance policy will typically not cover the damage caused to property. This is also the case for any costs associated with personal injury during an accident. In order to protect your company, adding hired, non-owned auto insurance to your existing policy (or investing in a stand-alone plan) is a sound decision.
If you feel like you’re covered by your commercial auto insurance in all situations, make sure you are considering the case of an employee driving a vehicle that isn’t owned by your company. Liability for personal injury or property damage when a hired vehicle is being used by your business can be costly.