Due to regular travels to and from worksites, specialty contractors such as plumbers, electricians, and roofers face a high risk of motor vehicle accidents. Colliding with an uninsured motorist, hitting a pedestrian, or even a tree falling on your business vehicle can result in expensive losses that could be avoided in the first place. Therefore, construction and contracting businesses require the right commercial auto insurance to protect themselves from such risks.
Dangers of Not Having Commercial Auto Insurance
Commercial auto insurance covers the losses emanating from a covered accident or event. In case of vandalism, for instance, it can cover the resulting repair or replacement costs. The risks of not having adequate commercial auto insurance include:
- Lawsuits from employees and third parties
- Financial losses
- Bad business reputation
Not having commercial auto insurance is a recipe for disaster. Besides financial losses, it can easily cause you to lose your livelihood.
Why Specialty Contractors Should Not Rely on Personal Auto Insurance?
In some instances, a personal auto insurance policy can provide coverage for certain business uses. For example, if you use your personal vehicle occasionally for business purposes, your personal auto insurance carrier may be able to customize your policy to indicate this usage, although you may have to pay higher premiums. However, a personal auto insurance policy only provides limited coverage for business use. Notably, it excludes liability claims. Therefore, if you are involved in an accident while using your personal vehicle for work, you’ll be overexposed to losses. Moreover, personal auto insurance offers no coverage for personal vehicles used mainly for work or business-owned vehicles.
Importance of Commercial Auto Insurance for Specialty Contracting Businesses
Most specialty contracting businesses are small, often having only one or two permanent employees. For such businesses, financial losses can have devastating effects, including business closure. Commercial auto insurance can help such businesses manage certain risks and control losses. Unlike personal auto insurance that provides limited coverage for business use, commercial auto insurance can extend coverage to employees, accidents other than collision, and additional automobiles.
Types of Coverage Options
The standard commercial auto insurance coverage options include:
- Collision coverage – This coverage comes in handy if your vehicle collides with another vehicle or object. Regardless of who is at fault, this coverage pays for the repair or replacement of the damaged car.
- Comprehensive coverage – This policy provides coverage for vehicle damages caused by anything other than collision. Covered perils include vandalism, theft, fire, fallen objects, and natural disasters.
- Personal injury protection – Abbreviated as PIP, this coverage pays for the costs that result in case an employee or bystander is injured during loading or unloading. Specifically, it covers medical expenses and lost wages, home care expenses, and funeral expenses. Regardless of who is at fault, this policy can also pay for the policyholder’s treatment expenses if they get involved in a motor vehicle accident.
- Uninsured motorists – If an uninsured driver damages your vehicle in a car accident, this policy will cover the related costs.
- Medical expenses coverage – This coverage pays for treatment costs for anyone injured in an accident involving your business vehicle.
How to Purchase the Right Auto Insurance Coverage
Do you want to secure the right commercial auto insurance for your contracting business? Then don’t hesitate to contact the experts at Artisan Insurance Solutions for assistance with your coverage needs today.