Commercial Auto Insurance for Contractors: What’s Required? 

If you run a contracting business, the vehicles you use on the job carry a different kind of risk than a personal commute. Hauling tools, transporting crews or driving between job sites can put your trucks and vans in high-risk situations every day. A standard personal auto policy excludes vehicles used for business purposes, which means an accident on the way to a job site could leave your company responsible for damages, medical costs and legal fees without any coverage in place.

What Commercial Auto Coverage Typically Includes

Commercial auto insurance may cover vehicles used for business purposes. Core coverage generally includes:

• Liability coverage for bodily injury and property damage your vehicles cause to others
• Collision coverage for damage to your own vehicles in an accident
• Comprehensive coverage for noncollision losses such as theft, fire or severe weather damage
• Uninsured/underinsured motorist coverage for accidents caused by a driver with little or no liability coverage

When Employees Drive on the Job

If your employees drive company vehicles or use their own vehicles for work, your policy needs to account for that. Hired and non-owned auto coverage may extend liability protection to vehicles your business uses but does not own. Without it, your company may be exposed when an employee runs an errand in their personal vehicle on your behalf.

Vehicle Type and Fleet Size Matter

Contractors often operate a mix of pickup trucks, vans and specialty vehicles. The weight of the vehicle, the number of vehicles in your fleet and how they are used can all influence your coverage requirements and premium.

Get Optimal Coverage for Your Vehicles

Contractors across Kansas City, KS face unique risks on the road and on the job. Contact Fusion Insurance Agency today to review your coverage options and make sure every vehicle your company relies on has solid financial protection.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.