Finding the Right Vehicle Insurance as a Contractor

As a contractor, you may think that your Business Owner's Policy (BOP) covers your company vehicles too, but that likely isn't the case. To get coverage for your company vehicles (or vehicles that you use for work) you'll want a commercial auto policy.

Why Is It Important for Contractors to Get A Commercial Auto Policy?

A commercial auto policy provides coverage for commercial vehicles.

Vehicles that are used for landscaping, lawn maintenance (and are not used for snow removal or firewood delivery), pickups, delivery trucks, cargo vans or even vehicles dedicated for travel as part of a consultancy or legal business are perfect candidates for a commercial auto policy.

In addition to the peace of mind, knowing your business vehicles are insured, commercial auto policies often come with much higher liability limits than personal auto policies. This means that you can be better insured for the risks you might incur while doing business.

Vehicle Insurance for Contractors

Contractors encounter many unique risks every day from business liability to complex vehicle use habits. Commercial auto insurance is designed to address these unique risks.

For instance, some commercial policies offer Blanket Additional Insured coverage which automatically extends coverage to any person or entity that the insured (contractor) is contractually required to provide coverage for, saving you and your business tons of administrative hassle.

Example: You're hired by a property owner who requires Blanket Additional Insured status in your contract. During the job, a tool falls and injures a passerby, who sues both you and the owner. Because the owner in this scenario is automatically included as an additional insured under the policy terms, the liability coverage can help you protect them for claims arising out of your work, without chasing a separate endorsement each time you start a new project.

Commercial policies may also offer Any Auto Legal Liability coverage that covers ANY car, van or truck owned, hired, rented, borrowed, leased or used occasionally for the business. Another critical, specialized coverage option which addresses the flexible nature of contractor vehicle use and work.

Example: As a contractor, you have your company vehicles listed on your policy, but occasionally need flexibility. For example, if you briefly rent a truck or an employee uses their personal vehicle for a quick work-related errand, and an accident occurs while they are acting on behalf of your business, Any Auto Legal Liability can help you protect yourself. This coverage is meant for incidental, occasional situations, not daily use, and responds when your business is legally responsible.

Exploring your coverage options? Consider finding a Foremost^® Agent near you for personalized guidance or call us at 888-244-8092.

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