Hired non owned auto insurance covers the liability and damages faced when employees operate rented, personal, or client owned vehicles for job purposes. Many staffing agency business owners mistakenly assume that they do not need coverage, because employee and client insurance policies cover accidents caused in non owned vehicles. While this is true in theory, you lack the control you need over the insurance on these vehicles to ensure proper protection.
Shortcomings of Other Forms of Insurance Coverage
Vehicles owned by employees and clients should carry insurance separate from your company, but relying on that insurance is risky because you do not know what shortcomings it has. A few of the potential problems that leave you liable are:
- The client or employee fail to insure their vehicles
- The insurance does not carry an adequate limit to cover the claim
- The employee is guilty of reckless driving
- The employee has a poor motor vehicle record (MVR)
- The client or employee do not keep the vehicle in good working order
Whether these or other shortcomings occur, you could be left liable for large amounts of money if you rely solely on employee and client insurance. It is safer to obtain hired non owned auto insurance that covers accidents and related lawsuits. Insurance coverage is inexpensive and easy to obtain; the risk of going without does not make sense.