Owning a staffing agency can come with certain risks. Individuals hired by the agency and assigned to work for clients of the agency may still be considered employees of the staffing agency. As such, the agency can be held liable for actions of those employees, including those committed while driving vehicles that don’t belong to the staffing agency. Staffing agencies that employ individuals who may drive vehicles for company business that are not owned by the staffing agency may need non owned automobile insurance.
Even if staffing agency employees drive cars that are owned by the agency’s clients, damages or injuries to third parties caused by the employees while driving those vehicles may not be covered by the client. Instead, the staffing agency can be held liable for those losses. A non-owned insurance policy could cover the staffing company’s liability for injuries to others or damage to their property.
Limitations of Coverage for Non-Owned Policies
While a staffing company’s non-owned policy may cover damage and injury to others, there can be some coverage limitations. For instance, damages to the vehicles driven by staffing employees may not be covered in some non owned automobile insurance policies. Understanding the limitations of your policy and obtaining the coverage that you need based on the circumstances of your staffing agency may save you from unexpected surprises if an accident occurs.