Do Contractors Need Commercial Auto Insurance?

In the world of contracting, whether you’re an HVAC technician, electrician, plumber or any other type of contractor, having the right insurance is crucial. One essential type of coverage is commercial auto insurance, which is specifically designed to cover vehicles used for business purposes.

Why Contractors Need Commercial Auto Insurance

Contractors often rely on vehicles to transport tools, equipment and workers to job sites. This constant movement increases the risk of accidents, vehicle damage and liability issues. Commercial auto insurance can offer a safety net, helping to cover costs associated with accidents, repairs and legal liabilities.

Key Components of Commercial Auto Insurance

Commercial auto insurance typically includes the following:

• Liability coverage may help shield a business from financial losses if one of its vehicles is involved in an accident that results in bodily injury or property damage to others.

• Collision coverage may help pay for damage to your business vehicle from accidents, cover repair costs and help replace the vehicle up to its actual cash value if it’s totaled.

• Comprehensive coverage may offer financial protection for damage to your business vehicle from noncollision incidents, such as theft, vandalism and severe weather.

• Uninsured/underinsured motorist coverage may help financially protect you if your vehicle is hit by someone without enough insurance.

• Medical payments coverage may help cover medical expenses for your drivers and passengers, regardless of who is at fault.

• Hired and non-owned auto coverage may extend financial protection to rented or employee-owned vehicles used for work purposes.

Benefits of Commercial Auto Insurance for Contractors

Having commercial auto insurance can not only protect your business from financial losses but can also enhance your credibility. Many clients and job contracts require proof of insurance before allowing contractors to work on their premises.

Learn More

For affordable insurance near you, contact AJ Gambardella Associates, LLC.

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.