Why Plumbers, Electricians, & Roofers Need Commercial Auto

In our post, “Top 3 Industries in Need of Commercial Auto Coverage,” we discussed the differences between personal and commercial coverage, and several industries that would greatly benefit from it. Today, we’re talking about why specialty contractors, like plumbers, electricians, and roofers, are specifically at risk without commercial auto insurance.

In this article, we’ll discuss the following:

• Why specialty contractors are at risk without commercial auto coverage
• Why specialty contractors aren’t always protected by personal auto insurance
• How commercial auto insurance protects specialty contractors

The Risks of Not Having Commercial Auto Insurance

Working on the job without a commercial auto insurance policy can be disastrous for a small business owner. If a vehicle is being used to conduct business, a personal insurance policy is often no longer applicable. That means that without a commercial auto insurance policy, the business could be responsible for:

• Collision damage for any vehicle or property involved
• Comprehensive damage caused by fallen trees or vandalism
• Loading or unloading accidents that injures a bystander or employee
• Medical coverage for anyone injured in an incident
• Vehicle damage caused by an uninsured driver

All of these incidents would generally be covered under a commercial auto insurance policy.

Why Personal Auto Insurance Isn’t Enough for Specialty Contractors

In an effort to control costs, many specialty contractors opt out of commercial auto insurance and stick with, instead, a personal auto insurance policy. But this is a bad idea. Not only does it put the business at risk, but it also could mean that medical expenses and property damage may not be covered in the event of a collision.

Personal auto insurance is designed to take care of medical expenses due to a collision. What it’s not designed to do is cover a business in the event that another party decides to sue for damages. Damages in this type of litigation could be emotional distress, physical harm, or property damage and liability. These claims can cost a small business millions, and without the right insurance coverage, a specialty contractor could go out of business.

Commercial Auto Insurance Protects Specialty Contracting Businesses

Specialty contracting businesses often have just one or two employees on the payroll, including the owner of the business. But that doesn’t mean that the business is covered under a personal auto insurance policy. That’s where a commercial auto insurance policy comes into play.

Commercial auto insurance takes a step up in terms of protection from a personal policy. In the event that your business is named in litigation, the commercial auto insurance policy will help ensure that you don’t lose your business. These policies can cover additional employees involved in the accident, incidents that occur during loading or unloading of equipment, and can extend that coverage to entire fleets of vehicles and teams of employees.

Any time a vehicle is used for business purposes, or “work” purposes, there is a risk that the business in play during those “work house” can be sued for the incident. Specialty contractors, including plumbers, electricians, and roofers are especially at risk because of the small nature of the business. Without that business and licensing, the business could face “Game Over.” But with commercial auto insurance, your business, equipment, and employees are protected by the insurance policy.

Learn More About Commercial Auto Insurance Coverage

Commercial auto insurance coverage should be a regular line item for small business owners and specialty contractors like anything else. But many don’t see the need or importance of such protection. If you couldn’t afford an expensive lawsuit, or can see the possibility of losing your business after a collision, then it might be time to consider adding commercial auto coverage to your insurance policy.