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Auto Insurance
for Contractors
What is Commercial Auto Insurance?
Commercial auto insurance is a specialized insurance policy that provides coverage for vehicles used for business purposes. This type of insurance is essential for contractors who rely on vehicles to transport equipment, tools, and employees to job sites. Commercial auto insurance typically covers damages to the vehicle, liability for bodily injury or property damage caused by the vehicle, and medical expenses for injuries sustained in an accident. It helps protect contractors from financial losses resulting from accidents or other unexpected events involving their business vehicles.
Types of Vehicles We Insure
Business Vehicles
Business vehicles, such as cars, vans, and trucks, used primarily for business purposes, are covered under commercial auto insurance. This coverage extends to vehicles owned or leased by the business and those owned by employees but used for business operations.
Trucks
Trucks used for business purposes, including pickup trucks, box trucks, and dump trucks, are covered under commercial auto insurance. This coverage includes protection against damages, liability, and medical expenses related to the operation of these vehicles.
Trailers
Trailers used in conjunction with business vehicles, such as utility trailers, flatbed trailers, and equipment trailers, are typically covered under commercial auto insurance. This coverage extends to damages, theft, and liability related to the use of trailers for business purposes.
What Does Auto Insurance for Contractors Cover?
Bodily Injury Liability Coverage
Pays for bodily injury or death resulting from an accident for which you are at fault; also provides legal defense.
Property Damage Liability Coverage
Provides you with protection if your car accidentally damages another person’s property; also provides legal defense.
Combined Single Limit (CSL)
Liability policies typically offer separate limits that apply to bodily injury claims for property damage. A combined single limits policy has the same dollar amount of coverage per covered occurrence whether bodily injury or property damage; one person or several.
Medical Payments, No-Fault or Personal Injury Coverage
Usually pays for the medical expenses of the driver and passengers in your car incurred as a result of a covered accident, regardless of fault.
Uninsured Motorist Coverage
Pays for your injuries and, in some circumstances, certain property damage caused by an uninsured or a hit-and-run driver. In some cases, underinsured motorist coverage is also included. This is for cases in which the at-fault driver has insufficient insurance.
Comprehensive Physical Damage Coverage
Pays for damage to or replacement of your car from theft, vandalism, flood, fire, and other covered perils.
Collision Coverage
Pays for damage to your car if it hits or is hit by another object.
What Is The Difference Between Commercial Auto Insurance & Personal?
Commercial Auto Insurance
- Designed for vehicles used primarily for business purposes.
- Covers higher liability limits to protect against potential business-related claims.
- Can include coverage for employees and nonowned vehicles used for business.
- Typically more expensive than personal auto insurance due to increased risk.
Personal Auto Insurance
- Designed for vehicles used for personal reasons, such as commuting or personal errands.
- Typically offers lower liability limits than commercial auto insurance.
- Does not cover vehicles used for business purposes, except for limited circumstances.
- Generally less expensive than commercial auto insurance.
FAQ
Do I need commercial auto insurance if I use my personal vehicle for business purposes?
Yes, if you use your personal vehicle for business purposes, you may need commercial auto insurance. Personal auto insurance typically does not cover vehicles used for business, but commercial insurance will cover for both personal and business use.
Does commercial auto insurance cover theft of my personal belongings?
Typically no, commercial auto insurance typically does not cover theft of personal belongings from your vehicle. The exception would be tools or items that are permanently attached to the vehicle. You can add coverage to your general liability insurance to cover theft.
What factors can affect the cost of commercial auto insurance for contractors?
Factors such as the type of vehicles insured, the number of vehicles, the driving records of employees, and the coverage limits can all affect the cost of commercial auto insurance.
How can I find the right commercial auto insurance policy for my contracting business?
To find the right policy, consider your specific business needs, and work with one of our insurance specialists who can guide you through insurance for contractors.