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Commercial auto insurance for construction and contracting businesses

Commercial auto insurance icon
Commercial auto insurance

Commercial auto insurance can pay for property damage and medical bills in an accident involving a business-owned vehicle. It also covers theft and certain types of damage.

Commercial auto insurance covers the vehicles you depend on

Driving to and from worksites exposes small construction and contracting businesses to a high level of risk. A collision could lead to another motorist getting injured, or expensive repairs for your construction truck or van.

An auto accident could cost your small business thousands of dollars, especially if another person is injured. Compare that to the median annual premium of $1,990 for a general contractor, or $1,600 for a painter, and it’s easy to see why commercial auto insurance is the better deal.

How does commercial auto insurance protect your business?

Commercial auto insurance can help cover the cost of lawsuits, property damage, medical bills, and other expenses that arise from an accident. It also pays for vehicle damage caused by weather or vandalism, along with vehicle theft.

This policy can be tailored to fit the unique needs of a construction company or contractor. For example, a plumber's van that is rarely used may need less coverage than a painter’s car that is driven daily.

Who needs commercial auto insurance?

Company-owned vehicles must be covered by commercial auto insurance.

Commercial auto insurance may be required if you:

  • Operate a construction or contracting vehicle
  • Transport tools and equipment
  • Send employees on errands during work hours

State regulations determine how much coverage you need. Your commercial auto insurance must meet your state’s liability insurance requirements.

What coverage can commercial auto provide for construction businesses?

You can tailor your commercial auto insurance policy to meet the needs of your carpentry business, painting company, or other construction or contracting enterprise. This policy typically covers:

Legal expenses

If your masonry business or other construction company is sued over an auto accident, legal fees can get out of hand fast. You may also end up paying for a settlement or court-ordered judgment out-of-pocket if not insured.

Medical expenses

If the driver of your business vehicle is injured, along with any passengers, this policy can cover the cost of medical care.

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Collision

Collision coverage pays for damage to your construction truck or other work vehicle, no matter who is at fault.

Motorists without insurance

Your coverage can help pay for damage caused by uninsured drivers.

Non-collision damages

A commercial auto insurance policy can pay for non-collision damages, including vandalism, theft, and fire.

Personal or rented vehicles may need additional coverage

Commercial auto insurance only covers business-owned vehicles, but sometimes employees drive their own cars for business errands. Personal auto policies almost always exclude coverage for business use. Hired and non-owned auto insurance offers liability coverage for construction professionals who get into an accident while driving their personal vehicle to conduct company business. It also covers leased or rented vehicles.

Other policies for construction and contracting businesses to consider

While commercial auto insurance is crucial for small businesses that depend on a car, van, or truck, it does not cover risks beyond those related to your vehicle. Owners of construction and contracting businesses should also consider:

General liability insurance: This policy can cover expenses related to client injury and property damage, such as a contractor sued for damaging a valuable antique in a client's home.

Workers’ compensation insurance: Required in almost every state for construction and contracting businesses that have employees, workers’ comp can cover medical fees for work-related injuries.

Contractor’s tools and equipment insurance: This policy helps pay for repair or replacement of a contractor’s equipment and tools if they are lost, stolen, or damaged.

Professional liability insurance: This policy covers professional mistakes and oversights, such as a contractor missing a deadline for a project.

Builder’s risk insurance: Builder’s risk insurance can pay for damage done to a structure still under construction, such as fire or vandalism at a construction site.

Get free quotes and compare policies with Insureon

Are you ready to safeguard your general contracting, electrical, handyman, or other construction vehicle with commercial auto insurance? Complete Insureon’s easy online application today. Once you find the right policy, you can begin coverage in less than 24 hours.

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