Auto Insurance for Construction Companies






Construction companies have very specific needs when it comes to their auto insurance policies. From compact pickup trucks all the way on up to stake trucks and cube vans, construction-based businesses rely on their vehicles as much as they do their tools and equipment to help them get the job done and serve their customers. Protecting their financial investment in these vehicles is crucial to landscapers, carpenters, roofers, and other construction companies.

Importance of Commercial Auto Coverage

Every construction company is different. Some are sole proprietorships owned and operated by a single person; others are large corporations with dozens of employees; and many others fall somewhere in between. But regardless of their structure or size, construction businesses need commercial vehicle insurance to protect them.

This fact is especially important for sole proprietors operating under a DBA. Owner/operators working under this arrangement often assume incorrectly that because their pickup trucks or other vehicles are titled in their name rather than a business name, they can get by with a private passenger car insurance policy in order to save on their operating expenses.

But private passenger insurance is insufficient to protect anyone who uses their vehicle for work. This includes transporting materials to the job and even driving to customers’ homes for estimates as well as transporting workers. In the event of an accident or other claim, if an insurance provider determines that a vehicle covered under a private passenger policy was in use by a construction company for business purposes, it is likely that claim will be denied and all coverage voided.

Protecting Business Vehicles from Risk

Construction businesses typically spend a lot of money on their vehicles, including the investment they make in equipment that those vehicles carry to the job. For instance, a gutter installation company might outfit a cube van with a gutter machine, ladders, and assorted hand and power tools, as well as the materials needed to complete the work. All this equipment needs to be protected against loss from auto accidents, theft, and other potential claims. The only way to protect a vehicle and its contents in this situation is with commercial auto insurance, regardless of title ownership.

Construction companies use all sorts of automobiles in their daily operations. Some pull multi-axle trailers with medium-duty pickups, for instance, to transport all their tools, equipment, and materials to the job. The insurance impact of this type of usage is as follows: rather than just needing to insure a pickup truck, the company also needs a policy that covers the trailer as well as all contents. Commercial insurance for construction companies may cost a bit more in terms of the premium, but this type of plan also provides much more extensive coverage for company assets, and also protects companies more effectively from liability concerns.

Liability Protection in Commercial Policies

A typical liability claim on a business automobile insurance policy will result in a much higher payout than the average claim on a private passenger policy. Think about the cargo these vehicles pull, how much they weigh, and the potential damage they could do to other cars and to property. It is easy to see the need for enhanced liability protection for any construction-based business. And this is exactly why commercial policies include much higher liability limits.

For self-employed sole proprietors especially, it can be tough to make the decision to opt for commercial coverage, especially for those who only use one single pickup or van. But the liability risk of owning and operating these vehicles alone is reason enough to invest in a quality policy that protects the company and its assets. On top of the physical risk represented by equipment and materials that can create more severe accident damage, there is also the inherent risk of a company being sued for pain and suffering, work loss, and medical expenses. A quality commercial policy is a must.

Choosing Reliable Vehicle Insurance

The good news is that there are plenty of highly rated commercial carriers in the market today. Construction companies are wise to examine a number of options and take a look at what each provider has to offer in terms of cost and coverage. Obtaining affordable business automobile insurance is relatively simple thanks to the continued emergence of the online market.

It is sensible to use the virtual market to compare prices and coverages from several leading insurers. Progressive, for example, offers commercial policies featuring broad driver acceptability, allowing new and experienced drivers alike to be insured; and non-owned coverage for company use of employee or rented vehicles. And GEICO provides a combined single limit (CSL) option that replaces separate limits for bodily injury and property injury liability claims. Shop around and compare rates from top providers and save on your company policy.


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