Contractors, from plumbers to electricians, usually run mobile businesses. After all, they generally have to visit other properties to be able to render the necessary services. So, when you are traveling for business, you need the appropriate motor vehicle insurance. Usually, commercial auto insurance is the best, if not the only solution for all contractors. Consider how this coverage can help you.
What’s Commercial Auto Insurance?
A business auto policy covers vehicles owned or used by businesses in the course of their duties. It works a lot like any other car insurance policy, because it helps vehicle owners pay for vehicle repairs, lawsuit settlements and other costs when wrecks or other accidents occur.
The way commercial auto insurance differs from a private policy is because it accounts for the fact that a business owns the vehicle, or that employee drivers operate on its behalf. The policy usually includes expanded coverage limits to account for the fact that a business could face significant costs in case a vehicle accident occurs. It has coverage limits that are designed to make it better than personal auto policies at covering such risks. Most commercial policies will not cover business vehicles for this reason.
Why do I need it?
If you are a contractor, and you have to drive from work site to work site, day in and day out, then you probably need a commercial auto insurance policy. Suppose that you have a wreck while driving between a property under construction, and your main office:
- If the wreck was your fault, then your auto liability insurance can pay for the property damage or injuries you caused to other drivers. It can even help the business settle lawsuit costs in case those parties sue the business.
- Damage to a business vehicle is a financial loss. If your policy includes collision insurance, the policy might help you pay for the repairs.
- When another driver is at-fault for the wreck, they might not have enough liability insurance themselves to cover your own losses. When your policy covers uninsured/underinsured motorist protection, then it can pay for your vehicle’s damage instead.
Coverage exists because it helps the business cover numerous costly losses without having to dig into its own pockets. It can even include roadside assistance coverage to help business owners when their vehicles run out of gas, have flat tires, or experience costly inconveniences. All in all, it can include numerous perks to help your contracting vehicles in good shape and on the road, with a minimum of cost inconvenience.