Ensure your business vehicles are protected with commercial auto insurance, designed to cover various risks associated with driving for business purposes. Whether you own a single vehicle or manage an entire fleet, this essential coverage protects against accidents, theft, and liability, allowing you to focus on your operations without the worry of unexpected costs.
Commercial auto insurance covers the vehicles a contracting business owns, leases, rents or hires, including work trucks, cargo vans and service vehicles. It pays for bodily injury and property damage your business is liable for, plus damage to the vehicle itself.
Commercial auto insurance offers protection for vehicles used in business operations. This coverage is essential for businesses that own, lease, or hire vehicles to transport goods, services, or employees. Unlike personal auto insurance, this policy is specifically designed to handle the unique risks associated with driving for business purposes.
As a business owner, you prioritize safety and efficiency, but accidents can occur even with the best precautions. That’s where commercial auto insurance comes in, providing necessary coverage for your vehicles, employees, and financial interests. Many states require this insurance for businesses, ensuring that you are legally protected on the road.
You need commercial auto insurance if your business owns or leases a vehicle, puts a logo or company name on a truck, hauls tools or materials to jobsites, or has employees driving on company business. General contractors, electricians, plumbers, HVAC technicians, roofers, landscapers and handyman businesses are the most common buyers.
A personal auto policy is written for personal driving and can deny a claim when the vehicle was being used for work. If the only vehicle in the business is a personal truck driven to jobsites, hired and non-owned auto coverage is usually the right answer rather than a full commercial auto policy.
Most general contractor agreements and municipal permits require proof of commercial auto insurance before work can start, and the certificate usually has to name the hiring party as an additional insured.
Commercial auto insurance protects your business from a variety of risks related to vehicle operations. Here’s an overview of what this coverage typically includes:
This coverage protects against claims of bodily injury or property damage resulting from an accident involving your business vehicle.
Example: An employee is involved in a collision while driving a company vehicle, causing injuries to another driver.
This coverage applies when a business vehicle is damaged in a collision with another vehicle or object.
Example: A delivery van crashes into a pole, leading to costly repairs.
This coverage helps with non-collision-related claim incidents, such as theft, vandalism, or natural disasters.
Example: A company truck is stolen from a job site.
This coverage pays for medical expenses for injuries sustained by the driver and passengers in your vehicle, regardless of fault.
Example: The driver and passengers face medical bills after an accident.
If you are involved in an accident with a driver who who lacks sufficient insurance, this coverage can help pay for your damages
Example: An uninsured driver causes a wreck, and this coverage helps cover your damages.
Hired and non-owned auto coverage applies to vehicles your business does not own: a rented box truck, a leased trailer, or a personal truck driven on company business.
Example: An employee drives their own pickup to pick up materials and rear-ends another vehicle. The personal auto carrier denies the claim because the trip was for work.
Talk to a real agent, not a voicemail. Certificates of insurance in under 4 hours, with bilingual support every day of the year.
While commercial auto insurance provides crucial protection, it’s important to be aware of its limitations. Here are some situations where this policy may not provide coverage:
1.
Vehicles used for personal purposes may not be covered under a commercial policy.
2.
Injuries sustained by employees while driving for business purposes are typically covered by workers’ compensation insurance.
3.
Damages resulting from intentional acts are not covered by this insurance.
4.
Routine maintenance issues or mechanical failures are not covered.
5.
Certain contractual obligations may not be covered unless specified in the policy.
Commercial auto insurance is essential for protecting your business from significant financial liabilities and losses that can arise from vehicle-related accidents. This coverage helps pay for legal fees and damages if your business is sued due to a collision or injury involving your vehicles.
Many contracts and agreements require proof of this insurance, making it vital for securing contracts and maintaining business credibility. By having commercial auto coverage, you protect your assets and ensure peace of mind, allowing you to focus on growth without the fear of unexpected financial burdens.
The cost of insurance policies essentially belongs under the FAQ section. Everyone wants to understand exactly how much money they will be paying for their commercial auto insurance policy, but understanding isn’t as simple as finding the average online and believing that is what you will pay.
Like your personal auto insurance provides, insurance companies offering commercial auto insurance consider certain things to understand your company’s risk. Factors include:
Just like personal auto insurance, the number of times you’ve been in an accident directly correlates with your payment rate.
A company’s history often indicates its attitudes towards responsibility and professionalism, making it easier for insurance companies to provide policies.
This is mostly applicable to businesses intending to keep their employees on the road for an extended period. For sole proprietors or companies that do not intend to have their employees drive company vehicles, this might weigh less upon the decision.
Crime is an issue when it comes to auto insurance, so if your company is in a neighborhood where crime is more prevalent, it is likely that you will pay more for your insurance.
If these standards look daunting, don’t worry! Contractors Liability can help you negotiate the best commercial auto insurance policy for your business. We’ll always steer you in the right path and we’ll listen to your financial and business concerns.
Only if the policy includes hired and non-owned auto coverage. A personal auto policy can deny a claim when the vehicle was being driven for business, which is the most common coverage gap for contractors with one truck.
Most general contractor agreements and municipal permits ask for a $1,000,000 combined single limit on commercial auto, and many also require the hiring party to be named as an additional insured. Check the contract before binding.
Certificates of Insurance are issued in under 4 hours during business hours, and an additional insured can usually be added at the same time. Request one through the policy service options on this page.
Yes, if that vehicle is owned by the business, titled to the business, or used primarily for work. The number of vehicles does not change whether the coverage is required, only what it costs.
A claim involving an unlicensed or suspended driver is likely to be denied, and allowing it can put the whole policy at risk. Verify motor vehicle records before letting anyone drive a company vehicle.
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