#1: Your Regular Auto Insurance Might Not Cover You
The biggest reason to buy a separate auto policy for your contracting company? Your personal one might not cover you. Quite a few insurance companies include clauses in their policies against business use. This makes it within their rights to deny a claim should you file one later.
Let’s think about what this means. For example, you get into a major accident. Your insurance company could decide to not pay for anything. This includes the other person’s vehicle damage or their medical bills. You may then be responsible for thousands of dollars in costs. For most people, this would be devastating to the growth of your business.
#2: You Could Be Liable for Situations Beyond Your Control
Imagine the following scenario: you head to a construction site and the ties holding down lumber in the bed of your truck snap, spilling materials all over the roadway. The vehicle behind you swerves to miss them and causes a multi-car pileup with injuries.
You might not feel responsible for something this uncontrollable. However, since your vehicle started the chain of events, you may indeed be liable. The affected parties may file suit against the business because of the damages they received. If you have an auto policy for your business, you will have to worry less about these potential problems and the financial issues associated with them.
#3: What If You Don’t Own a Fleet of Construction Vehicles?
Say all your workers drive their own personal vehicles and you don’t have your own fleet. Do you still need commercial insurance? The simple answer is that you still need business auto insurance.
Many commercial insurers offer “non-owned” automobile coverage. This means if an employee driving their personal vehicle to a job site or errand gets into an accident, your policy may help cover any excess liability. Often, this saves companies in situations where they were facing very large lawsuits that would have otherwise ruined them.