Fleet Vehicles and Liability: Are You Covered for Seasonal Employees?

Hiring seasonal workers to handle increased demand is a smart way to scale your business, but adding those employees to your operations introduces coverage questions that deserve attention before anyone gets behind the wheel. If your business relies on a fleet of vehicles and brings on temporary or seasonal staff, your current commercial auto insurance policy may have gaps you have not addressed.

Who Is Covered Under Your Commercial Auto Policy?

Most commercial auto policies extend coverage to employees driving company vehicles in the course of their work duties, but “employee” can be defined narrowly. Seasonal workers, temp agency staff, and contract drivers may fall outside that definition depending on how your policy is written. Reviewing your policy’s driver eligibility language before the season begins protects you from an unpleasant surprise after an incident.

Key Coverage Areas to Review

When evaluating your fleet coverage for seasonal operations, pay close attention to these areas:

• Driver scheduling and approval requirements: Many policies require listed or approved drivers. Adding seasonal employees to that list keeps coverage intact.
• Hired and non-owned auto coverage: If seasonal staff use personal vehicles for business errands, this coverage addresses liability that commercial auto alone may not.
• Workers’ compensation: Injuries to employees, including seasonal staff, typically fall under workers’ compensation rather than your auto policy.
• Liability limits: Higher headcount and increased vehicle use can raise your exposure. Your agent can help determine whether your current limits align with your expanded operations.

Before the Season Starts

Notify your insurance agent when your workforce grows significantly. Providing accurate driver counts and vehicle use details helps ensure your policy reflects your operations accurately.

Get the Right Coverage for Your Team

Seasonal business cycles move fast, and coverage gaps can surface without warning. Contact Bacon Insurance to review your fleet and employee coverage before your busiest season arrives, and make sure your policy keeps pace with your workforce.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.