Commercial Auto Insurance
Protection for Trade Contractors on the Road
Your truck isn't just transportation—it's your mobile office, tool storage, and lifeline to every job site. Commercial Auto insurance protects your business vehicles and the cargo they carry when accidents happen, because one serious crash could cost more than your annual income.
Commercial Auto insurance covers liability, physical damage, and other losses involving vehicles used for business purposes, including company-owned vehicles and personal vehicles used for work.
When Commercial Auto Insurance DOES Cover You
Scenario 1: The Multi-Vehicle Accident (General Contractor)
You're driving your work truck to a job site when another driver runs a red light and hits you, causing a chain reaction involving three cars. Two people are seriously injured, and property damage exceeds $100,000. The other driver has minimal insurance.
Commercial Auto Response: Your liability coverage pays medical bills and property damage for others involved. Your collision coverage repairs your truck. Your uninsured/underinsured motorist coverage protects you when the other driver's insurance isn't enough. Total protection could reach $500,000+.
Scenario 2: The Tool Theft from Vehicle (Electrical Contractor)
While stopped for lunch, thieves break into your locked service van and steal $15,000 worth of specialized electrical tools and testing equipment visible through the windows.
Commercial Auto Response: Your comprehensive coverage includes coverage for business tools and equipment in the vehicle, reimbursing you for the stolen items (subject to limits and deductible).
Scenario 3: The Customer Property Damage (HVAC Contractor)
While backing out of a customer's driveway, you accidentally hit their expensive decorative fountain, causing $8,000 in damage to their landscaping and hardscaping.
Commercial Auto Response: Your liability coverage pays for the property damage, legal defense if needed, and any additional claims the customer might make.
Scenario 4: The Weather-Related Damage (Plumber)
A severe hailstorm damages your work van while you're at a job site. The windshield is cracked, the hood is dented, and your roof-mounted equipment rack is destroyed.
Commercial Auto Response: Comprehensive coverage pays for all storm-related damage to your vehicle and permanently attached equipment.
Scenario 5: The Hit-and-Run Incident (Any Trade)
While your van is parked at a job site, someone hits it and drives away, causing significant damage. There are no witnesses, and the other driver is never found.
Commercial Auto Response: Your uninsured motorist property damage coverage pays for repairs since the at-fault driver can't be identified.
Scenario 6: The Medical Emergency (General Contractor)
You have a heart attack while driving to a job site and crash into a guardrail. You're hospitalized for weeks, and your truck is totaled.
Commercial Auto Response: Your collision coverage pays for the vehicle damage. Your medical payments coverage helps with immediate medical bills. Your rental reimbursement keeps you mobile while recovering.
Scenario 7: The Employee Driving Incident (Any Trade)
Your employee is driving the company truck to pick up materials when they cause an accident that injures multiple people. The lawsuits total over $1 million.
Commercial Auto Response: Your commercial auto liability protects your business from the massive financial exposure, covering legal defense, settlements, and judgments.
When Commercial Auto Insurance Does NOT Cover You
Personal Use Exclusions
You use the company truck to move your personal furniture on the weekend and cause an accident. Many policies exclude coverage for personal use of business vehicles.
Racing or Competition
You enter your work truck in a local mud bog competition and crash. Racing and competitive events are typically excluded.
Tools Not in the Vehicle
Your tools are stolen from a job site while your truck is parked elsewhere. Auto coverage typically only covers tools actually in the vehicle at the time of loss.
Mechanical Breakdown
Your transmission fails due to normal wear and tear. Commercial auto covers accidents and covered perils, not mechanical failures or maintenance issues.
DUI/Criminal Activity
Your employee is arrested for DUI while driving the company vehicle, or uses the truck to commit a crime. Criminal acts are excluded.
Delivery Business Exclusions
If you occasionally deliver materials as a favor to suppliers, but your policy excludes delivery operations, accidents during these activities might not be covered.
Overweight/Overloaded Vehicle
You exceed your truck's weight capacity, and the overload contributes to an accident. Some policies exclude coverage when vehicles are operated beyond their rated capacity.
Modified Vehicle Issues
You install a heavy crane on your truck without informing your insurer, and the modification contributes to an accident. Undisclosed modifications can void coverage.
Special Considerations for Trade Contractors
Tools and Equipment Coverage
Standard auto policies may have low limits for tools and equipment. Consider these options:
Higher tools and equipment limits on your auto policy
Scheduled coverage for expensive items
Inland Marine coverage for tools that travel
Hired and Non-Owned Auto Coverage
Protects your business when:
Employees use personal vehicles for work
You rent vehicles for business use
You borrow vehicles for business purposes
Garagekeepers Coverage
If you occasionally work on customer vehicles (like a plumber fixing a sink in an RV), this covers damage to vehicles in your care.
Contractor's Equipment Coverage
For specialized mounted equipment like cranes, lifts, or welding rigs permanently attached to your vehicle.
The Bottom Line: Your Mobile Business Needs Mobile Protection
Trade contractors face unique auto risks:
Higher mileage from traveling between job sites
Valuable tools and materials in vehicles
Larger, heavier vehicles that cause more damage in accidents
Exposure to theft in unfamiliar neighborhoods
Vehicles used in industrial environments
The average commercial auto liability claim costs over $35,000, and severe accidents can easily reach $1 million+. Without proper coverage:
One accident could bankrupt your business
You could lose your license and ability to work
Stolen tools could shut down operations for weeks
You might face personal liability for business vehicle accidents
Personal auto insurance won't cover business use, and the gaps in coverage could be financially devastating. Commercial Auto insurance isn't just about fixing your truck—it's about protecting your business, your employees, your customers, and your financial future.
Don't let the road to your next job become the road to bankruptcy. Get Commercial Auto coverage designed for trade contractors who understand that your vehicle is essential to your livelihood.