Does My Construction Business Need Commercial Auto?

07
June 2024
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Does your construction business need commercial auto insurance, or will your personal coverage be enough?

Whether you are a skilled tradesperson working solo or a scaling construction company with a growing number of employees, the right insurance coverage can help protect your assets and profit.

Especially out on the streets and highways.

Why Every Construction Business Needs Commercial Auto Coverage

There are over 2 million car accidents a year in the U.S.

While you may be a street-wise, safe driver, it's almost impossible to know when a distracted, texting, drunk, or unsafe driver in another car could be on a collision course with your vehicle.

Only commercial auto is designed to cover an accident involving a vehicle owned or used by your business.

Personal auto policies are intended to cover personal, non-business activities in a vehicle, like picking your kids up from school, driving yourself to work, or enjoying a road trip for vacation.

Once your vehicle starts being used for business purposes, however, it falls outside the coverage of a personal policy.

Commercial auto insurance is designed to cover your hard-working business vehicles, whether you're transporting tools and equipment or clients, picking up materials for a project, or having employees use company-owned vehicles.

If you answer yes to any of the following questions, you likely need commercial auto for your business vehicles:

  • Is the vehicle owned or leased by your business entity?
  • Does your vehicle transport materials, equipment, tools, merchandise, or supplies regularly?
  • Do you ask/ allow your employees to drive your vehicle?
  • Do you regularly drive clients or employees in your vehicle?

How Much Commercial Auto Coverage Do You Need?

Like a personal auto insurance policy, you can choose the right coverage for your hard-working business vehicles. Based on your business needs and risks, you may want to consider:

  • Liability: Similar to your personal car insurance, liability protects you in the event of bodily injury or death.
  • Comprehensive: Protection for your work vehicle if it's damaged due to weather, theft, deer, falling trees, and other non-collision events.
  • Collision: This coverage can help pay for repairs or vehicle replacement when an accident occurs due to a collision.
  • Uninsured Motorist: Coverage for damages and injuries if your commercial vehicle is hit by a hit-and-run or uninsured driver.
  • Non-owned Auto: This policy protects your business if an employee is driving their own vehicle and causes an accident while on the job.

When your vehicle plays a critical role in your construction business, you'll want to make sure you have the right auto coverage in place to protect it. Contact your trusted insurance professional to find out how to best protect your work trucks, vans, and other hard-working business vehicles.
 

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