What is Commercial Automobile Insurance?
Most construction companies and contractors would not be able to function without a vehicle to travel from construction site to construction site. The vehicles they use in the construction industry must be covered under commercial auto insurance. This type of insurance is different from personal vehicle insurance and is necessary to cover the contractor, construction worker, and any employees who may also drive company vehicles, in the event of an accident or injury while using the vehicle.
Why do Contractors Need Business Auto Coverage?
The importance of commercial auto insurance for contractors is vital to the continued operation of their business. Insurance coverage is required by law, but there are several different types of commercial auto insurance that may apply to your construction or contracting business. Having insurance coverage for any vehicles or motorized equipment you own can protect you and your business from a major loss in the event of an automobile accident related to your work or company.
Commercial auto insurance can cover the cost of replacement or repair of a vehicle used for professional purposes; what’s more, important expenses like medical expenses, liability coverage, and uninsured coverage are all available for construction companies looking for comprehensive auto insurance coverage. Here are some of the different types of auto insurance for contractors.
Liability Auto Coverage
First and foremost, it is important to clarify that any travel to and from work at the start of your day and the end of your workday are not covered under commercial auto insurance policies. Only travel that is required to do business will be covered. These typically include visiting work sites, traveling to provide assessments, and transporting supplies, etc. Liability insurance is the kind of insurance that can protect you and your construction company from the high expenses should you or anyone else covered under the policy in your construction company, be in an accident, and it is determined you are responsible for the accident. This type of coverage also helps to protect others from having to pay medical expenses, vehicle repair and more in you are at fault in the accident.
Physical Damage to Automobile Coverage
While the amount of coverage you may choose will vary, it is important to have some coverage for your company’s vehicles to protect you from having to pay the high costs of repairs after an accident. Construction workers and contractors have the option to obtain comprehensive damage coverage which might include protecting the business vehicles if they are stolen, are damaged due to vandalism, or in the event of a natural disaster. What’s more, if your company vehicle is in an accident with another car, it can help pay for the costs associated with those repairs.
Medical Coverage Under Automobile Insurance
Construction contractors should strongly consider including a medical coverage policy with their automobile insurance for the commercial vehicles. This type of insurance protects your business from having to pay medical expenses out of pocket if you are at fault for an auto accident, or if your employees are injured on the job while driving your company vehicles. This is a separate policy obtained through our insurance company, but we can walk you through your options when you apply for insurance with us.
Uninsured Motorist Coverage
While insurance is required to drive a vehicle, it does not mean that everyone follows those rules. It happens, from time to time, that construction company vehicles get in an accident with another motorist who does not have insurance. What’s more, your construction employees could be using their vehicles to get back and forth to work sites, and this could cause a lot of expensive problems for a construction company should the employee get in an accident while traveling on behalf of the organization.
We are Specialists in Commercial Auto Insurance for Contractors
When it comes to understanding the ins and outs of commercial auto insurance for construction professionals, no one understands more about your options than our insurance company. We can offer you up-to-date information on policies, state laws, and more so that you can make a decision quickly and easily about the kind of insurance you need for your commercial vehicles. We’ll ask you some simple questions and then be able to tell you what kind of insurance you need. Reach out to us today to get a quote or talk about your auto insurance needs for your construction company.