Please note: the following article was developed for educational purposes only and covers a wide variety of general workplace safety concerns and considerations, some not relevant to commercial auto coverage.
As a small business owner, your workforce often expands during busy seasons. Whether you're ramping up for the holidays, hiring summer help, or staffing up for agricultural harvests, seasonal employees can play a vital role. If these temporary workers are operating your company vehicles, it's important to understand how that affects your commercial auto insurance.
Insuring seasonal employees may seem complex, but it doesn't have to be. With a little planning, you can protect your business, remain compliant, and manage your insurance costs effectively. This guide covers everything you need to know about handling commercial auto insurance for seasonal employees.
Commercial auto insurance covers vehicles used for business operations. This includes cars, vans, and trucks owned or leased by your business. A standard commercial policy typically provides several types of coverage:
This type of insurance is essential for companies that rely on vehicles to deliver services or products. However, when your team includes short-term or temporary drivers, there are extra steps to take.
Seasonal employees are individuals hired to work for a limited period, usually during a peak season. These employees might be full-time or part-time, and they often support industries like retail, delivery, agriculture, landscaping, and tourism.
If these employees will be operating your company’s vehicles as part of their job duties, you’ll likely need to adjust your business auto insurance policy to ensure they are properly covered.
Insuring seasonal workers presents unique challenges compared to full-time, year-round employees. Here are some reasons you should approach this with care:
If you don’t properly insure these drivers, your business may be exposed to unnecessary liability risks.
To protect your business and your seasonal workforce, here’s how to ensure your commercial vehicle insurance policy is set up correctly.
Start by discussing your seasonal hiring plans with your commercial auto insurance provider. They will help you determine whether:
This step can prevent claims from being denied due to improper coverage.
Before allowing any seasonal employee to operate a company vehicle, check their driving record. This helps you identify potential risks and make informed decisions. Some insurers may also require this step as part of their underwriting process.
Drivers with a clean record can help keep your premiums lower, while those with violations may increase your risk exposure.
Every driver, even temporary ones, should sign a written vehicle use agreement. This document should outline:
Having a clear policy not only improves safety but also strengthens your position in the event of an insurance claim.
Even if they’re only with you for a short time, all seasonal drivers should receive safety training. This can include defensive driving, safe loading and unloading procedures, and protocols for weather conditions.
Fleet safety programs may even qualify your business for discounts from some insurers.
As you hire and release seasonal workers, update your insurance provider with any changes to your driver list. If you forget to remove a former employee or fail to add a new one, you could run into issues with claim eligibility or inflated premiums.
Make it a regular practice to review your policy during seasonal onboarding and offboarding.
If a seasonal worker uses their own car to perform business duties—such as deliveries or running errands—their personal auto policy likely won't offer enough protection for work-related activities.
To address this, you may need hired and non-owned auto insurance (HNOA). This coverage protects your business if a worker causes an accident in their personal vehicle while performing job-related tasks. It’s particularly useful if you rely on seasonal contractors or gig workers.
When it comes to insuring seasonal drivers, some common missteps can leave your business exposed:
Avoiding these pitfalls helps protect your business from legal and financial challenges.
Depending on your business model, you may not need year-round coverage for extra vehicles or drivers. Some insurers offer flexible options like short-term commercial auto coverage or policies tailored to seasonal operations.
This is especially helpful for businesses such as:
Ask your provider if this type of policy fits your situation and could save you money during off-seasons.
As your business grows and adapts to seasonal demand, it’s essential to stay proactive about risk management. Here are some final tips for handling commercial auto insurance and employee safety effectively:
Taking these steps can help your business stay protected, compliant, and ready to thrive during peak seasons.
Thanks for reading! This content is intended for educational purposes only and does not imply coverage under commercial auto or other insurance offered through Pie Insurance Services, Inc. Policies underwritten by Pie are not available in all states and situations. Please consult an agent or attorney for any questions regarding applicability of insurance coverage in all circumstances.
