Can I include employee-owned vehicles in my policy?
It is common for staffing agencies to have employees use their personal vehicles for business errands or client visits. However, many owners are surprised to find that their standard commercial policy might not automatically cover these situations. At Wright Risk, we help you close these gaps to ensure your business is protected regardless of who owns the vehicle.
Understanding Non-Owned Auto Coverage
Standard commercial auto insurance typically covers vehicles titled in the company's name. To protect your agency when staff drive their own cars for work, you need "Non-Owned Auto" coverage. This specific endorsement provides liability protection for the business if an employee is involved in an accident while performing work-related tasks, stepping in where personal policies may fall short.
The Role of Hired Auto Insurance
If your agency frequently rents or leases vehicles for business travel, "Hired Auto" insurance is equally essential. This coverage applies to vehicles you don't own but are using temporarily for company operations. Combining Hired and Non-Owned Auto (HNOA) coverage ensures that your liability is addressed whether the vehicle is a rental or an employee’s personal sedan.
Limits of Liability Protection
It is important to note that HNOA coverage is primarily designed to protect the business's liability, not the physical damage to the employee's car. The employee's personal insurance remains the primary coverage for their own vehicle's repairs. We work with you to explain these distinctions so that your staff understands their responsibilities and your agency remains shielded from third-party lawsuits.
Assessing Your Fleet Risk
Every staffing agency has a unique risk profile depending on how often vehicles are used. We recommend a thorough assessment of your "gray fleet"—the collection of personal vehicles used for work—to determine the appropriate coverage limits. By documenting which employees drive for business and ensuring they have valid licenses, you can better manage the risks associated with mobile operations.
Ensuring that every mile driven on behalf of your business is covered is vital for long-term stability. Whether it's an errand to the post office or a trip to a client site, the right auto endorsements make all the difference. Wright Risk Management specializes in tailoring auto policies that account for the unique realities of the staffing industry. Reach out to our team today to learn how we can secure your fleet and get more info on our HNOA options.
