Yes, Construction Company Insurance can protect the vehicles you use to carry out the work of your contractor business. But it isn’t as simple as it sounds. Construction Company Insurance is the name for a bunch of insurance policies that are bundled into one program. It isn’t one policy. Does yours include vehicle insurance?
What is Construction Company Insurance?
No one policy protects your contractor business from all the risks that your contractor business is likely to face. For example:
- Contractors Liability coverage is for claims from a third party. It does not include the theft of your tools or equipment, damage, theft of your work vehicle.
- Workers Compensation does not provide coverage for bodily injury to your client or a visitor to your building site.
- Builder’s Risk Insurance offers no third party coverage. It is for specific projects not for day-to-day coverage
None of these policies protect your construction vehicles. For this, you will need to invest in commercial auto coverage as part of your insurance program.
Commercial Auto Insurance
Many contractors use their personal vehicles for both personal and business purposes. Your personal auto insurance is unlikely to cover any accidents when you use your personal vehicle for work.
The types of construction vehicles included in Commercial Auto Insurance can be:
- Pickup trucks
- Cement mixers
- Pump trucks
- Bucket trucks
- Flatbed trucks
- Dump trucks
4 Coverage options
Commercial auto insurance helps policyholders avoid financial risks. This can be high vehicle repair costs, medical expenses, or lawsuits resulting from vehicular accidents. There are several coverage options for commercial auto insurance policies. These mirror the coverage options of standard auto insurance policies. In no particular order, the standard coverage options include:
- Physical Damage Coverage for collision damages to company vehicles after collision, vandalism or destruction from natural disasters. It can also cover stolen vehicles
- Medical Payments Coverage pays injury-related expenses including medical bills, ambulance fees, hospital fees, and funeral expenses.
- Uninsured Motorist Coverage for damages and injuries caused by uninsured drivers.
- Liability Coverage protects both your company and employees from expenses arising from accidents caused by employees.
When it comes to any insurance policies (including those part of your Construction Company Insurance), contractors often look for the cheapest option. Sometimes this results in insufficient coverage. In other words, you will be underinsured. The worst-case scenario is that your policy will be voided and all your premiums returned. You will have zero coverage for your vehicles.
How to choose
However, if you choose the right insurance company, you can get the best rates for the best coverage. A trusted insurance company will tailor any policy to fit your company’s needs. Your cheap insurance policy will still be a good policy. Bear in mind that, when you bundle policies, you are likely to get a better rate.
Advice about Construction Company Insurance
Can Commercial Auto Insurance be included in your Construction Company Insurance program? Find out from Farmer Brown Insurance company. Call one of our consultants at (888) 973-0016