Save big by letting three agents bid on your auto liability insurance
Contractor Auto Liability Insurance Protects Your Business
A contractor’s vehicle is his biggest, costliest tool. It’s also the tool most likely to cause damage to others. That’s why its so important to get contractor vehicle insurance. With this insurance, your business won’t be held responsible if you or one of your workers gets into an accident on the job. It saves you from paying huge reimbursement fees. It’s also a legal obligation in most states.
Commercial Auto Liability policies include two different provisions, which protect you from two different occurrences. Bodily injury protection pays for accidents that result in someone being killed or injured and covers all medical costs and related expenses. Personal damage protection pays for accidents that result in damage to the property of others, including automobiles.
Does my contracting business need auto liability insurance?
Most of the time if you’re asking that question, the answer is yes. You are legally required to get commercial auto liability insurance if:
- You drive owned or leased vehicles used exclusively for work
- You have workers who drive company-owned or -leased vehicles
- Your workers drive their own vehicles while on the clock
- You or your workers drive vehicles for both personal and business use
This applies to everyone — general contractors and subcontractors alike. Subs are not covered by the GC’s policy. So whether you’re in construction, landscaping, roofing, HVAC, electrical, cleaning, plumbing, or excavation, you need auto liability insurance if you use a work vehicle.
The average cost of auto liability insurance for contractors
On average, commercial auto insurance costs between $1500 and $3000 a year for a general contractor with a single vehicle. This price is largely determined by:
- How much your vehicle costs
- Your accident history
- How far you typically travel
- Your credit history
- Your primary trades
How to get cheap commercial auto liability
There are steps that small business owners can take to reduce the cost of their insurance. Sometimes this means getting worse coverage at a cheaper rate, but not always. Here are four ways to get a cheaper premium without sacrificing the strength of your policy.
1. Pay your entire premium at the beginning of the year
You can shave a percentage off your overall premium if you take care of a large chunk of it at the beginning of the year instead of paying month to month. Insurance companies reward customers who pay this way.
2. Hire only employees with clean driving histories
Insurance agents look at the accident histories of your employees. So it’s important that you at least ask potential hires if they’ve been in any wrecks recently, especially if they’ll be driving a lot for your company.
3. Stay out of accidents
This is a no brainer. The fewer claims you have, the cheaper your coverage will be. It’s important to continually stress the importance of safe driving to your workers and to discipline any employee that you catch driving recklessly. It’s equally important that you follow safe driving practices yourself.
4. Shop around
The single best thing you can do today to get a cheap policy is to compare quotes from several insurance agents at once. We’ve made this easy. Fill out one form and we’ll connect you with three agents who specialize in contractor insurance. It’s fast and it’s free. Get started now!