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Commercial auto insurance for installation businesses

Commercial auto insurance covers legal bills, medical expenses, and property damage if an installation professional's business vehicle is involved in an accident.

Commercial auto insurance protects against costly accidents

Your employees might be skilled drivers, but you can’t control the unexpected. An auto accident could lead to another driver getting injured, or your installation truck or van being totaled.

Costs could easily accumulate to thousands of dollars, or more if another person is harmed. Compare that to the average premium of $216 per month for installation companies, 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 pay for lawsuits, property damage, medical bills, and other expenses that arise from an accident. It also covers vehicle theft and damage caused by weather and vandalism.

This policy can be tailored to fit your installation company’s specific needs. For example, a pickup used to deliver large appliances once a week may require less coverage than an HVAC contractor’s van that is driven daily.

It's important to note that a commercial auto policy doesn't cover employees commuting to work in their personal use car.

Commercial auto insurance needs checklist infographic

Who needs commercial auto insurance?

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

Commercial auto insurance may be required if you:

  • Operate an installation vehicle
  • Transport tools and equipment
  • Send employees on errands during work hours

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

What coverage can commercial auto provide for installation businesses?

You can customize your commercial auto insurance policy with various coverage options—like comprehensive coverage and personal injury protection—and liability limits to match the needs of your installation business. This policy typically covers the following:

Legal expenses

If your installation business is taken to court over an auto accident, legal fees can pile up quickly. In addition to hiring a lawyer, you might also have to pay a settlement or judgment – all of which could be covered by commercial auto insurance.

Medical bills

If the driver or a passenger in your company-owned vehicle suffers a bodily injury in an accident, this policy can help cover medical payments.

Collision coverage

Collision damage coverage helps pay for repairs to your company car, pickup truck, van, SUV, or other work vehicle, regardless of who is at fault.

Uninsured and underinsured motorists

This policy provides underinsured and uninsured motorist coverage, which covers damage caused by drivers who don’t have insurance, or inadequate coverage.

Physical damage

Your commercial car insurance policy may also cover damage caused by vandalism or certain weather events, as well as vehicle theft.

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Personal vehicles may require additional coverage

Commercial auto insurance covers business-owned vehicles, but sometimes employees drive their own cars for business purposes. Personal auto insurance policies almost always exclude coverage for business use.

Hired and non-owned auto insurance (HNOA) offers liability coverage for installation professionals involved in a crash while driving a personal vehicle to conduct company business. It will also cover vehicles that are leased and rented.

How much does commercial auto insurance cost for installation professionals?

Installation professional calculating insurance costs for their business.

Installation professionals pay an average of $216 per month for commercial auto insurance

Insurance rates for installation professionals and contractors are based on a few factors, including:

  • The type of work and installs you do, such as HVAC systems, appliances, or flooring
  • Number and type of business vehicles on the policy
  • Annual business revenue
  • Location and number of employees
  • Driving records
  • Claims history, coverage limits, deductibles, exclusions, and endorsements

Other important policies for installers

While commercial auto coverage is a must-have for businesses that own a truck or company fleet, it does not cover risks beyond those related to your vehicle. Small business owners should also consider the following types of coverage:

General liability insurance: This policy covers expenses related to customer injuries and property damage, such as damage to a hardwood floor caused by an appliance installer.

Business owner's policy (BOP): A BOP bundles general liability coverage with commercial property insurance at a discount. It protects against common accidents, property damage liability, and damage to your own business property.

Workers’ compensation insurance: Workers’ comp helps pay for medical expenses from work-related injuries and illnesses. It's required in most states for businesses that have employees.

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

Mobile equipment endorsement: A mobile equipment endorsement extends your truck insurance coverage to include “non-auto” mobile equipment, such as a maintenance truck, tow truck, generator, cherry picker, or other similar type of vehicle, while it’s driven on a public road for work purposes.

Cyber insurance: Any business that handles personal information, from credit card numbers to email addresses, should carry this coverage. It covers costs related to data breaches and cyberattacks.

Get free quotes and buy online with Insureon

Are you ready to safeguard your company's vehicle with commercial auto insurance? Complete Insureon’s easy online application today to get quotes from leading U.S. insurance companies.

You can also speak with a licensed insurance agent to make sure you get the best coverage for your type of business. Once you find the right policy, you can begin coverage in less than 24 hours.

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Updated: April 9, 2024

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