When your business necessitates non-employees to drive company vehicles then there are certain aspects you should understand from an insurance perspective. These subcontractors can drive your vehicles, but to your insurance carrier they will be viewed as an employee. If they are in an accident then this opens up your business to liability even though they are not under your employment. Recognizing commercial auto risks such as these is essential to protecting your company from detrimental losses.
Liability Coverage for Subcontractors
Subcontractors are typically not named as insured drivers on your commercial policy. When they drive your vehicles with no coverage of their own then essentially you are assuming their risk. One way to structure insurance is for the contractor to carry their own professional liability policy. It is common to then have them name your company as an additional insured on that coverage. If they are liable for damages in an accident this ensures that the responsibility lies with the subcontractor and their insurance.
Daily business moves quickly and decisions are often made without much thought regarding risks. Be sure to slow down and consider your commercial auto liability situation. Each business model may be slightly different so a professional insurance agent can help walk you through available options.