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Commercial Auto Insurance

How Will Commercial Auto Insurance Benefit My Construction-focused Business?

Companies and professionals in the construction sector may often require the services of motor vehicles as they transport employees, materials and equipment between job sites. However, while trucks, vans and other automobiles may frequently be necessary, they also generally increase a business’s risk profile.

Fortunately, you can compensate for this by securing the right commercial auto insurance.

Who Needs Commercial Auto Coverage?

A commercial auto insurance policy is a necessary investment for any enterprise that uses motor vehicles for business purposes. Coverage is typically mandated by law in most states. Furthermore, your lenders may impose additional requirements if you’ve financed your company vehicles.

Failing to adhere to these obligations could incur significant fines and other penalties, making suitable insurance essential.

What Does My Policy Cover?

Auto insurance for businesses may include many facets similar to those policies that an individual or family might purchase for their personal vehicle. Still, there are of course additional coverage options and nuances that must be understood to ensure adequate financial protection. Consider including the following in your construction company’s policy:

Third-party liability coverage—This is typically required by law and may help offset other parties’ losses for which you are at fault, such as those arising from bodily injuries and property damage.

Collision coverage—This part of your commercial auto policy can assist with repair or replacement costs should your vehicles be damaged in a crash.

Comprehensive coverage—Noncollision incidents, such as fires, vandalism, theft and severe weather, are typically covered by this feature of your policy.

Medical payments coverage—This coverage can assist with employees’ health care expenses if they are injured in an accident.

Hired and nonowned coverage—If you include this in your business’s policy, you may be covered for incidents involving personal or rented vehicles used for company purposes.

Uninsured/underinsured motorist coverage—With this coverage, you can be compensated for your losses even if another party is at fault and lacks sufficient insurance.