Why You Need Commercial Auto and Truck Insurance
Owned vehicles, leased vehicles, even rented and non-owned vehicles are all considered assets to your business, any of which may suddenly become a tremendous liability without proper commercial insurance coverage. From auto liability, to collision and repair, to shielding goods and materials in transit, your commercial auto insurance policy should offer seamless and thorough coverage.
If you’re just beginning to assemble your contractor’s insurance portfolio, or if you’re reviewing your existing coverage, it’s a good idea to take a look at your commercial auto and truck insurance coverage. No matter how many vehicles your company maintains, it’s always important to have the right coverage, especially if you and your employees spend a lot of hours on the road.
No one knows contractor’s insurance better than ContractorsInsurance.org. Our commercial auto insurance professionals can assist you in finding the commercial auto insurance policy that best suits the individual needs of your business, and we pride ourselves in helping all of our 4,500 customers find and maintain the best coverage for the best price.
What Commercial Auto and Truck Insurance Does
Commercial auto and truck insurance is a policy that offers coverage on vehicles used in a business capacity, whether it’s a single truck used by a sole proprietor to get from job site to job site, or entire fleets of passenger and freight vehicles.
In its basic structure, a commercial auto and truck insurance policy is not unlike a personal policy. There are areas of the policy that address liability in the event of an accident, collision and repair, personal injury, and coverage for uninsured motorists. Coverage can be adjusted in each specific area (and in some cases for each specific vehicle) in order to tailor the policy to an individual business, although state minimum insurance requirements must be considered wherever applicable.
The major difference between a commercial auto policy and a personal auto policy lies in the amount of coverage extended not only to drivers and to individual vehicles, but also to goods and materials present in those vehicles at the time of an accident. Commercial car insurance policies also take into account longer periods of time spent in the insured vehicles, and longer distances covered. Policies may extend coverage to rented and leased vehicles, as well as employee-owned vehicles driven for the purpose of work performed for the company.
Who Needs Commercial Auto and Truck Insurance?
Anyone who uses their vehicle for work purposes, including sole proprietors and subcontractors, can purchase a commercial auto insurance policy. Contractors who own vehicles that are used solely for work, or whose vehicles are registered to a business or association name rather than to an individual, must have a commercial auto insurance policy.
If employees drive business-owned vehicles as part of their job, those employees should be listed on the contractor’s commercial auto insurance policy. A Department of Motor Vehicles screening at the time of hire (or upon granting the employee access to the vehicle) should be performed, as listing employees with favorable driving records helps keep policy premiums low. The same screening process may also be performed on insured employees using their own vehicles for work purposes. Separate riders for hired autos can be added to a policy to accommodate rental or short-term lease vehicles, a convenient asset for seasonal businesses.
Many business owners think that they should automatically purchase their custom commercial auto policies from the company that underwrites their general liability insurance policy, however that is simply not true. Low cost commercial auto insurance should be purchased from the company whose policies, coverage and costs best suit the individual business.