Your construction firm may have a fleet of vehicles for your employees to use, or they may use their own trucks or automobiles on the job. You must have the right commercial Auto insurance in place to protect your operation.
When do you need Commercial Auto insurance?
- The company owns the truck(s) or automobile(s) being used for work.
- You haul tools or equipment in a business vehicle.
- You or your employees transport materials in a personal car, van, or truck for work.
Commercial Auto insurance covers you and your employees who drive a company vehicle and are listed on the policy. Add any employee who regularly drives commercial vehicles to your policy.
Commercial Auto insurance provides several key coverages:
- Bodily Injury/Property Damage Liability: Pays for others’ injuries and property damage you accidentally cause if you are sued for negligence. Liability coverage limits should align with how much is needed to protect your assets adequately.
- Medical Payments: Covers medical expenses for you and your passengers.
- Uninsured/Underinsured Motorist Liability: Pays for injuries to you and passengers if you’re hit by an uninsured driver or a driver who doesn’t have enough Liability insurance to pay for your medical bills and property damage.
- Comprehensive: Covers the expenses to repair or replace your work vehicle due to theft, vandalism, fire, falling objects, and collisions with animals. A deductible is associated with this coverage and depends on how much you can pay out of pocket before the insurance kicks in.
- Collision: Pays to repair or replace your work vehicle after a car accident. A deductible also applies.
Additional Coverages Are Available
You should also purchase Hired and Non-owned Liability coverage if you or your employees rent or lease a vehicle and/or use your own vehicles while conducting company business. This coverage will pay for third-party bodily injury and property damage claims filed against your company resulting from an accident with hired or non-owned vehicles. It is common for contractors to use their own trucks, vans, or cars for work. A personal Auto policy covers insureds while driving to and from work but typically doesn’t cover work-related accidents that could happen while, for example, delivering materials to a job site.
Rental Reimbursement coverage is available to help pay for a rental car while your business vehicle is in the shop being repaired after an accident. Roadside Assistance insurance is also available to help cover the costs of a tow, jump-start, and other services for business vehicles insured under your policy.
How Insurance Premiums Are Determined
The cost of Commercial Auto insurance depends on several factors, including:
- Business size
- Business and driving risks
- Number of employees driving insured vehicles
- Number of vehicles
- Types of vehicles
- Value of vehicles
- Claims history
- Employee driving records
- Policy coverage limits
- Deductibles
Without the proper coverage, your construction company will be vulnerable to financial loss.
NOTE: The insuring agreement in a policy sets out the covered perils, assumed risks, and nature of coverage that the insurance company provides to its insured in exchange for the premiums paid. Thus, the terms and conditions of the policy will dictate whether coverage exists and the nature of any potential benefits.