Some of the main commercial auto insurance benefits for contractors involve avoiding heavy lawsuits if one of your drivers causes damage to someone's personal property. As long as you have enough liability coverage in place, your company won't have to dig into its profits to pay for someone's medical bills. A standard commercial auto policy for contractors usually covers repairs for your company's vehicles or damage caused to a third party's vehicle.
When an employee gets into an accident on the job in their own personal vehicle, a commercial auto policy won't cover it. That's why you need to weigh the pros and cons of letting employees drive their own cars for work-related activities.
Different Types of Auto Coverage
Liability coverage - Your business needs to meet the minimum auto insurance requirements for your state, which usually equates to liability and property damage up to specified coverage limits. Liability coverage pays for medical bills related to bodily injury from a collision.
Property damage coverage - You need to carry property damage coverage so that if one of your drivers crashes into someone's driveway, your business will be covered. Without this coverage, your firm can be sued for thousands of dollars.
Uninsured/Underinsured coverage - If your driver is involved in an accident with an uninsured motorist who is at fault, you can have your uninsured coverage pay for it. The coverage also pays for hit-and-run accidents.
Comprehensive coverage - This coverage pays for non-collision damage, such as if a tree branch falls on your vehicle. It also covers losses that are beyond a company's control, such as theft or vandalism.