Commercial Auto Insurance for Plumbers, Roofers, and Electricians: An Overview

Specialty contractors such as plumbers, electricians, and roofers who often travel to and from worksites, face a high risk of being involved in motor vehicle accidents. Hitting a pedestrian, colliding with an uninsured or underinsured driver, or a heavy object falling on your commercial vehicle can cause extensive losses that could have been prevented in the first place.

If you own a construction or contracting business, you should consider getting commercial auto insurance to protect your business and employees in the event of an accident. Read on to learn more about commercial auto insurance for specialty contractors.

What If You Don’t Have Commercial Auto Insurance?

Commercial auto insurance covers losses resulting from a named peril. For instance: if vandals destroy your vehicle, this policy will cover the repair/replacement costs. 

Not having adequate commercial auto insurance may lead to:

• Lawsuits from injured employees or other third parties
• Financial losses, that may even result in bankruptcy
• Bad business reputation

Can Personal Auto Insurance Be Enough?

At times, a personal auto insurance policy may cover vehicles used for business. For instance, if you use your personal vehicle to drive to and from work, your insurance provider may customize your personal auto insurance policy to indicate this usage.

However, such personal insurance will only offer limited coverage and will not pay for liability claims. Therefore, if you are involved in an accident while using your personal vehicle for work, you’ll be at risk of paying for any resulting losses out of pocket. 

Why Specialty Contracting Businesses Need Commercial Auto Insurance

Specialty contracting businesses are generally small-scale ventures with only one or two permanent employees. For such businesses, financial losses can even result in a complete shutdown. Commercial auto insurance can help such businesses alleviate their risk exposures and significantly reduce their losses. Unlike personal auto insurance that provides only limited protection, a commercial auto insurance policy will extend coverage to employees, additional vehicles and incidents other than collision.

Available Coverage Options

• Collision coverage – Covers losses incurred when your vehicle collides with another vehicle or an obstacle, regardless of who caused the accident.
• Comprehensive coverage – Covers damages caused by factors other than collision such as vandalism, theft, fire, fallen objects, and natural disasters.
• Personal injury protection – Pays for medical expenses of employees or bystanders injured during loading/ unloading.  Also covers lost wages, home care expenses, and funeral expenses. 
• Uninsured motorists – Covers damages caused to your vehicle by an uninsured or underinsured (with inadequate coverage) driver.
• Medical expenses coverage – Pays for medical bills incurred by anyone injured in an accident caused by your business vehicle.

Also Read: Do Independent Contractors Require Workers Compensation Insurance?

Are you looking for the right insurance for your contracting business? Contact our experts at Riverbend Insurance for assistance with your coverage needs.