Why Require Auto Liability Insurance in Construction?
Just like General Liability insurance protects your business from risks on the job site, Commercial Auto Liability insurance steps in to cover claims related to vehicles used in your business operations. But here’s the catch: most General Liability policies don’t cover anything involving vehicles. If your business relies on wheels to get the job done, you’ll need a separate Commercial Auto Liability policy to protect against accidents, property damage, or bodily injury that can happen when operating vehicles.
Who Needs Commercial Auto Liability Insurance?
In construction, many companies need Commercial Auto Liability insurance to ensure they’re covered when vehicles are involved. If your business does any of the following, this coverage is a must:
Owns, leases, or rents any vehicles for business use
Has employees who drive their personal vehicles to conduct business on behalf of the company
Basically, if vehicles are part of your day-to-day operations, you need Auto Liability insurance to protect against the unexpected.
Types of Commercial Auto Liability Insurance
Not all Auto Liability coverage is the same!
There are a few different types depending on how your business uses vehicles:
Any Auto: The most comprehensive coverage, Any Auto covers all vehicles used in your business, whether they’re owned, rented, or even employee-owned. If your business relies on a fleet or various vehicles, this type of coverage is ideal. Keep in mind, businesses that don’t own vehicles may not be eligible to purchase Any Auto coverage.
All Owned Autos: This type of coverage is for vehicles your business actually owns. If you’ve got a company truck or work van, All Owned Autos will cover it for any accidents or claims during business operations. However, vehicles owned by employees don’t count here!
Hired Autos: This applies to vehicles your business doesn’t own but might lease, rent, or borrow for work. Whether you rent a truck for a short-term project or lease vehicles, Hired Autos coverage makes sure you’re protected.
Non-Owned Autos: Sometimes, employees use their personal vehicles to handle company tasks. If they get into an accident while working for you, your business could be held liable. That’s where Non-Owned Autos coverage steps in—it protects your business when employees use their own cars for work.
Scheduled Autos: With Scheduled Autos coverage, only specific vehicles listed in the insurance policy are covered. This type of policy names each vehicle, usually by make and license plate, to clarify exactly which ones are protected.
In construction, where vehicles are critical for hauling materials, transporting workers, or getting from one site to another, making sure your business has the right Auto Liability coverage is essential. It keeps you protected on the road so you can focus on building safely!