Contractors handle a lot of different types of work in their day-to-day jobs, but there is often one big commonality between those jobs. Contracts have to travel to get to their worksites, which means that they have to protect the vehicles they travel in by getting their own Youi Comprehensive Car Insurance.
Depending on the type of construction a contractor is doing, they might be using multiple vehicles or large vehicles that can transport different equipment. Though their personal insurance may cover some incidents, having commercial auto insurance is essential for full protection.
Learn more about why every construction contractor needs commercial auto insurance today.
Commercial Auto Insurance Explained
What exactly is commercial auto insurance?
Commercial auto insurance is a type of car insurance coverage that protects business-owned vehicles more than a standard personal car insurance policy would. Usually, these plans are set up to cover all vehicles owned by the business, but they can sometimes be applied to leased or rented vehicles as well.
Depending on the type of coverage chosen, commercial coverage protects vehicles against incidents of theft, damage, and third-party liabilities. Having this type of protection ensures that your business will not be left with huge financial losses if there is an accident or if one of your vehicles is stolen.
What Commercial Auto Insurance Covers
Depending on the level and grade of commercial auto insurance chosen, it will cover a variety of different areas. These may include the following:
- Bodily injury liability: covers injuries caused by business drivers
- Personal injury protection (PIP): covers medical bills for those in the vehicle
- Comprehensive coverage: covers damages of car unrelated to car accidents (such as theft or natural emergencies)
- Collision coverage: covers damages caused to vehicle by other vehicles
- Asset protection: covers what is owed on a totaled vehicle
- Underinsured motorist coverage: covers injuries and damages caused by unknown or uninsured drivers
Not every commercial insurance plan will contain all of these coverage types, and the exact coverage limits will vary depending on the vehicle.
Additionally, commercial auto insurance laws vary from state to state, so it’s essential to check what the rules are in your state as well. Commercial insurance companies in Texas may have very different plans available than in Oklahoma, so research in your specific area.
How Does Commercial Auto Insurance Differ From Personal Car Insurance?
You might have noticed that some of the coverage areas included with commercial car insurance are similar to what is included with your personal car insurance coverage. Why, then, do construction contractors need to get commercial coverage on top of their personal coverage?
The answer lies in the terms of personal auto insurance coverage plans. These plans are intended only to cover personal use of your vehicle, including your commute to work. However, driving done for work or of work vehicles would not be covered in most personal insurance plans. This means that transporting commercial equipment, for example, wouldn’t be covered.
The difference in these insurances isn’t so much about the exact vehicle used (though some plans might specify that) and is more about the conditions under which cars are being used. This is why you need to have commercial auto insurance even if you use your personal vehicle to carry your equipment to a job site.
How Commercial Auto Insurance Benefits Contractors
Construction contractors typically have work vehicles for keeping and transporting these goods. Often, these vehicles are packed with expensive equipment and commercial goods that will be used on a job site on any given day.
When an incident like an accident or theft occurs, there are a lot of losses that might be incurred. By ensuring that you have the right type of commercial auto insurance, it’s possible to quickly and easily recoup those losses without seeing excessive damages to your business.
Whether you’re a one-person contractor or run a small team, having coverage to protect your employees, your equipment, and you is key.
Commercial auto insurance is the best way to do that in terms of car insurance, so make sure that you shop around for the best plan. You have many different coverage options to consider, from choosing the cheapest insurance for business purposes to the most expensive.
Secure The Future: Cover Your Business
Working in construction, you already know how important it is to have many different types of coverage for your business. Commercial auto insurance coverage for the vehicles you own and rent is another important part of that protection. Without the right protections in place, you will end up losing money on things that you could have had covered.
Property insurance, general liability insurance, and other business owner policies are all very important to have. They protect your investment in your business and help to cover any unexpected incidents.
Ensure that you know what types of insurance you need for your business, and keep them all up to date to protect the future of your business.