Why Contractors Need Commercial Auto Insurance

As a contractor, you’re relied on to provide essential contributions and components to various projects. Whether you’re a general contractor overseeing a job or an independent worker providing specific services, you may need appropriate insurance to account for risks and exposures. Vehicle-related concerns are particularly prevalent, as you may need commercial auto insurance for a multitude of reasons.

The Importance of Auto Insurance for Contractors

Given the many operations and tasks conducted by contractors, your vehicular risks and exposures may differ significantly from others in your sector and even peers working on the same job. Still, there are several reasons why understanding, purchasing and maintaining this type of policy is essential. Consider the following real-life examples demonstrating the importance of coverage:

• While delivering supplies at a jobsite, your truck collides with scaffolding, causing bodily injuries to other contractors and property damage to the developer. In these situations, commercial auto liability coverage may limit out-of-pocket consequences, as you’d likely be found liable for other parties’ losses.

• In the midst of traveling to a project, you’re involved in an accident. Even if you’re driving a personal vehicle, since you’re using it for business purposes, commercial auto coverage is likely necessary. Collision coverage specifically can help manage the aftermath of this situation, potentially paying for repairs or a new vehicle.

• Even while parked, your company vehicles could be vulnerable to damage. Thieves and vandals may often target construction sites, and severe weather is also an inherent concern. Without comprehensive coverage, you may lack the resources to get back on the road promptly, which could cause you to miss deadlines and lose out on prospective jobs.

Is Coverage Required?

In almost every state, including Florida, commercial auto insurance is legally required for companies that own or use vehicles for business purposes. Even independent contractors using their personal vehicles to travel between jobs or deliver supplies typically need a commercial policy. If you don’t adhere to these mandates, you could face costly penalties, including fines and having your license suspended.

How to Get Commercial Auto Coverage Near You

Contact First Choice Insurance Solutions Inc in Hollywood, Florida, today to discuss your commercial auto coverage needs and explore available options.