Commercial Auto Insurance for Contractors: What You Need to Know
As a contractor, your vehicles are the lifeblood of your business. From hauling equipment to transporting your crew, your trucks, vans, and cars are essential tools for getting the job done. That’s why securing the right commercial auto insurance is not just a regulatory requirement; it’s a fundamental part of a solid business strategy. A standard personal auto policy often falls short of covering the unique risks associated with contracting work, leaving you exposed to significant financial loss. At Insurance Company Lancaster Ohio, we understand the specific challenges contractors face and can help you navigate your coverage options.
Understanding Core Coverage for Your Business Vehicles
When you look at policies, you’ll see several types of coverage. Most policies have key protections. These protect your business from financial losses due to accidents, theft, and other unexpected events involving your work vehicles. Understanding each coverage is the first step. This will help you build a policy that protects your assets and livelihood.
Liability Coverage Explained
Liability coverage is the cornerstone of any commercial auto policy. If you or an employee are found at fault for an accident, this coverage helps pay for bodily injury to others and damage to their property. Although state laws mandate minimum liability limits, these are often insufficient for a business. In fact, a single serious accident can result in costs far exceeding state minimums. Therefore, it is wise for contractors to select higher limits to protect their business assets from being seized to cover a claim.
Physical Damage Coverage
Physical damage coverage protects your work vehicles. It has two main parts: collision and comprehensive. Collision coverage pays for repairs if your vehicle crashes or overturns. Comprehensive coverage handles non-collision damage. This includes theft, vandalism, fire, or hail. This coverage is crucial for contractors with specialized vehicles. It helps them get back on the road fast.
Protecting your business means protecting your tools. A good commercial auto policy keeps your business running after an incident. Evaluate your risks and vehicle use. Then, you can get a plan that offers peace of mind and strong financial protection. Contact Insurance Company Lancaster Ohio today for a tailored policy.