(971) 645-4292

support@acoorg.com

The Importance Of Commercial Auto Insurance For Contractors

In the hustle of your daily business activities, auto insurance is probably not high on the list of priorities. Yet, most contractors use many vehicles to ensure that their employees, materials, and tools get to their job sites. The more vehicles you have on the road, and the more time they spend there, the greater the chance they could get into an accident or be damaged. Commercial auto insurance covers the cost of these potential accidents, helping contractors keep the focus on their business and avoid losses.

What is commercial auto insurance?

Commercial auto insurance provides coverage for vehicles used for business purposes. Vehicles can be owned, leased, or rented, and driven by the business owner or one of their employees. Coverage is provided for cars, trucks, trailers, vans, and other vehicles designed for use on public roads. Since contractors spend a lot of their time driving between job sites and delivering materials and tools, they often need to purchase a commercial auto insurance policy to cover their vehicles and passengers.

There are four main types of auto insurance that are offered under a commercial auto policy:

  1. Liability insurance – Similar to the liability insurance you carry for your personal vehicle, this coverage protects you from costs due to injuries, vehicle or property damage, and in some cases legal fees. In most states this coverage is required for any vehicle on the road.
  2. Medical insurance – This coverage protects drivers and passengers from having to pay medical expenses due to an accident.
  3. Uninsured motorist insurance – This coverage protects you from having to cover costs for an accident caused by a driver that does not have auto insurance.
  4. Comprehensive/collision insurance – Protects you from paying for vehicle damage caused by theft, vandalism, flood, fire, or being hit by an object or another vehicle.
  5. Non-owned vehicle insurance – Covers employees who drive their own vehicles for business purposes. Provides damage and injury coverage, similar to liability insurance.

Coverage limits and deductibles can be customized to fit your needs. You can vary the coverage on each vehicle depending on its features and value. In most cases you must provide liability insurance for each vehicle you operate, but you can choose to purchase comprehensive/collision coverage only on newer vehicles or those that may require expensive repairs.

You can extend coverage by purchasing a business umbrella policy. Once the limit is reached on your auto policy, the umbrella policy kicks in and provides additional benefits.

What does commercial auto insurance cover?

Commercial auto insurance provides coverage for:

  • Accident-related expenses, including injuries, deaths, or vehicle or property damage
  • Theft/vandalism (under comprehensive coverage)
  • Fire
  • Vehicles hit by objects

It’s important for contractors to note that commercial auto coverage does not cover materials, tools, or equipment being transported. To provide coverage for these types of losses, you’ll need property, inland marine, or builders risk insurance.

Differences between personal and commercial auto insurance

While personal and commercial auto insurance both provide coverage for similar losses, there are some differences between the policy types. Their differences include higher limits, coverage for rental vehicles, and coverage for employees when driving their personal vehicles for business purposes.

Generally, commercial auto policies will carry a higher limit to the damages they’ll pay. According to the Insurance Information Institute, most insurers recommend $1 million in coverage for a standard commercial insurance policy. This limit applies to all vehicles covered by the policy.

Commercial auto policies will provide coverage for vehicles rented for business purposes. This includes vehicles like pickup trucks, box trucks, and other commercial vehicles. This coverage is not provided through a personal auto insurance policy.

Finally, commercial coverage extends to employees who are driving their personal vehicles to conduct business. For example, if your office manager is on the way to the bank to make a deposit for the business and gets in an accident, the company’s commercial auto policy will cover any damages or injuries.

Is commercial auto insurance required?

To determine if your company needs to purchase a commercial auto insurance policy, answer the following questions:

  1. Does the business own, lease, or rent vehicles?
  2. Are those vehicles driven by you or your employees?
  3. Are your vehicles primarily used for work purposes?
  4. Do employees use their personal vehicles for work purposes (errands, travel between sites, deliver materials)?

If you answered yes to one or more of the questions above, you should look into purchasing commercial auto insurance. Personal insurance may provide some coverage in extenuating circumstances, but it won’t provide coverage for the situations above. Check with your insurance company or agent to make sure you know exactly when you are covered.

How much commercial auto coverage should you buy?

As was mentioned above, insurers recommend a minimum of $1 million in auto liability insurance. In most states, companies are required to provide higher coverage limits than with a personal policy. That’s because commercial vehicles pose a greater risk because of the amount of time they’re on the road and the increased number of vehicles.

The amount of collision and comprehensive insurance you should purchase will depend on several factors, including how many vehicles you are covering, the age of the vehicles, and their makes and models.

How much does commercial auto insurance cost?

The average price for commercial auto insurance is $147 per month or $1,762 annually. Your individual premium cost will vary by the insurance company and is based on your driving record, the record(s) of your employees, and the number and makes/models of vehicles you’ll be covering.

To keep costs down, consider these strategies:

  • Check the driving record of applicants before hiring them
  • Purchase your commercial auto policy with the same company you purchase other business insurance with
  • Pay the bill in full, instead of making monthly payments
  • Emphasize safe driving and keep your vehicles secure
  • Raise the deductible

Where to buy commercial auto insurance

Most large insurance companies that provide insurance for businesses will provide commercial auto insurance policies. In addition, there are some specialty providers that offer specialized policies for contractors. You can do a simple internet search or contact an insurance agent, who can provide quotes from several insurers and help you select the best one for your situation.

Related Posts

Course Content: Asbestos Awareness w/Wallet Card and Respiratory Protection Training (Spanish)

This Asbestos Awareness w/Wallet Card and Respiratory Protection Training (Spanish) bundle consists of 2 courses:

Per 29 CFR 1910.134, OSHA requires employers to provide effective training to employees who are required to use respirators. The training must be comprehensive, understandable, and recur annually — and more often if necessary.

Respiratory Training Course Outline (4 Hours):

• Module 1: Respiratory Protection Course Overview

• Module 2: Introduction to Respiratory Protection

• Module 3: Types of Respiratory Protection

• Module 4: Respirator Selection and Use

• Module 5: Respirator Medical Evaluation

• Module 6: Respirator Fit Testing

• Module 7: Respirator Training and Program Guidelines

• Module 8: Respirator Maintenance and Care

• Module 9: Video – Respirators

• Final Exam

Asbestos Awareness – This Asbestos Awareness course provides students with an understanding of the harmful effects of asbestos, the knowledge to avoid asbestos exposures, and the ability to identify work areas where asbestos may be present. It will also familiarize them with OSHA and EPA standards designed to protect workers on the job site, among many other important topics.

Asbestos Awareness w/Wallet Card (2 Hour)

• Module 1: Asbestos

• Module 2: Asbestos Awareness

• Final Exam

This Online Course Bundle is approved for 5 CE credits with Oregon CCB.

 

Course Content: Safety and Compliance (Spanish)

This Safety & Compliance (Spanish) course consists of 3 individual courses:

OSHA Respiratory Protection Training – Per 29 CFR 1910.134, OSHA requires employers to provide effective training to employees who are required to use respirators. The training must be comprehensive, understandable, and recur annually — and more often if necessary.

Respiratory Training Course Outline (3 Hours):

• Module 1: Respiratory Protection Course Overview

• Module 2: Introduction to Respiratory Protection

• Module 3: Types of Respiratory Protection

• Module 4: Respirator Selection and Use

• Module 5: Respirator Medical Evaluation

• Module 6: Respirator Fit Testing

• Module 7: Respirator Training and Program Guidelines

• Module 8: Respirator Maintenance and Care

• Module 9: Video – Respirators

• Final Exam

Back Safety in The Workplace – According to OSHA, back injuries are the nation’s biggest workplace safety problem. The Bureau of Labor Statistics estimates that more than one million workers suffer back injuries each year. This Online Back Safety in the Workplace Training course is intended to educate workers about back injuries, discuss how to prevent them, and suggest lifting techniques and guidelines.

Back Safety in the Worplace (1 Hour):

• Module 1: Introduction to Back Safety

• Module 2: Back Injury Prevention

• Module 3: Lifting Techniques and Guidelines

• Final Exam

Sexual Discrimination & Harassment Prevention – This course is intended for both Employers and Employees. The course is meant for anyone who may encounter sexual harassment in the workplace. This course outlines the legal definition of sexual harassment, and teaches students how to recognize and report workplace sexual harassment.

Sexual Discrimination & Harassment Prevention (1 Hour):

• Module 1: Sexual Harassment Overview

• Module 2: Sexual Harassment Continued

• Final Exam

This Online Course Bundle is approved for 5 CE credits with Oregon CCB.

 

Course Content: Hazard and Health (Spanish)

This Hazard and Health (Spanish) course consists of 2 individual Courses:

Back Safety in The Workplace (Spanish) – According to OSHA, back injuries are the nation’s biggest workplace safety problem. The Bureau of Labor Statistics estimates that more than one million workers suffer back injuries each year. This Online Back Safety in the Workplace Training course is intended to educate workers about back injuries, discuss how to prevent them, and suggest lifting techniques and guidelines.

Back Safety in the Workplace (1 Hour):

• Module 1: Introduction to Back Safety

• Module 2: Back Injury Prevention

• Module 3: Lifting Techniques and Guidelines

• Final Exam

OSHA Hazard Communication Training Aligned w/GHS (Spanish) – This course is intended for workers who are exposed to hazardous chemicals at the workplace, as well as workers involved in the shipment, importation, and manufacture of hazardous materials. This course provides students with training on the changes implemented to the HAZCOM Standard brought about by the Globally Harmonized System (GHS) of Classification and Labeling of Chemicals, in accordance with OSHA’s 2012 HAZCOM Standard.

OSHA Hazard Communication Training Aligned with GHS (4 Hour):

Module 1

• The Hazard Communication Standard

• Hazard Recognition and Reference Sources

• Introduction to Toxicology

• Physical and Chemical Properties

• General Safety Hazards

• Course Exam

Module 2

• GHS and Hazard Communication

• Hazard Classification

• Labeling

• Safety Data Sheets

• Course Exam

This Online Course Bundle is approved for 5 CE credits with Oregon CCB.

 

Safety and Health

This Safety and Health bundle consists of 1 2-hour course and 3 1-hour courses:

OSHA Respiratory Protection

Back Safety in The Workplace – According to OSHA, back injuries are the nation’s biggest workplace safety problem. The Bureau of Labor Statistics estimates that more than one million workers suffer back injuries each year. This Online Back Safety in the Workplace Training course is intended to educate workers about back injuries, discuss how to prevent them, and suggest lifting techniques and guidelines.

Back Safety in the Worplace (1 Hour)

• Module 1: Introduction to Back Safety

• Module 2: Back Injury Prevention

• Module 3: Lifting Techniques and Guidelines

• Final Exam

Heat & Illness Prevention for Supervisors – This Heat Illness Prevention for Supervisors course will focus on defining, recognizing, preventing, and treating heat stress, as well as outlining a supervisor’s responsibilities.

Heat and Illness Prevention for Supervisors (2 Hour):

• Module 1: Management’s Role in Safety and Health

• Module 2: The Financial Impacts of Risk Management

• Module 3: Hazard Analysis Methodologies

• Final Exam

Personal Protective Equipment Program and Selection (PPE) – This course is meant to introduce workers to the contents of a PPE program, and outline considerations for selecting proper PPE. This training should be combined with company specific training with the actual PPE to be used and include sufficient hands-on training and practice.

Personal Protective Equipment (PPE) Program and Selection (1 Hour)

• Module 1: Personal Protective Equipment (PPE) Program

• Module 2: Personal Protective Equipment (PPE) Selection

• Final Exam

Sexual Discrimination & Harassment Prevention – This course is intended for both Employers and Employees. The course is meant for anyone who may encounter sexual harassment in the workplace. This course outlines the legal definition of sexual harassment, and teaches students how to recognize and report workplace sexual harassment.

Sexual Discrimination & Harassment Prevention (1 Hour):

• Module 1: Sexual Harassment Overview

• Module 2: Sexual Harassment Continued

• Final Exam

Training Providers should be used to ensure credibility and augment a company’s existing training program. Therefore, in addition to the training provided by an outside party, a student should receive site-specific training that is supplied by their own company, or a credible outside source, and as a rule should be well documented.

This Online Course Bundle is approved for 5 CE credits with Oregon CCB.

 

Safety and Compliance

This Safety and Compliance bundle consists of 5 individual 1-Hour Courses:

OSHA Respiratory Protection

Heat & Illness Prevention for Employees – This course will focus on defining, recognizing, preventing, and treating heat stress. Employees must be trained on heat illness recognition and prevention, including training on their own employer-specific policies and procedures. Training must be provided before the beginning of work that involves the risk of heat illness.

Heat & Illness Prevention for Employees (1 Hour):

• Module 1: Course Overview

• Module 2: Heat Illness and Injuries

• Module 3: Heat Illness Prevention

• Final Exam

Back Safety in The Workplace – According to OSHA, back injuries are the nation’s biggest workplace safety problem. The Bureau of Labor Statistics estimates that more than one million workers suffer back injuries each year. This Online Back Safety in the Workplace Training course is intended to educate workers about back injuries, discuss how to prevent them, and suggest lifting techniques and guidelines.

Back Safety in the Workplace (1 Hour):

• Module 1: Introduction to Back Safety

• Module 2: Back Injury Prevention

• Module 3: Lifting Techniques and Guidelines

• Final Exam

Health and Safety Management – This course is designed to be used as part of an overall Health and Safety Program for all employees. This course is meant to introduce students to the contents of a Health and Safety Program, discuss management’s role in the program, the financial impacts of risk management and hazard analysis methods.

Health and Safety Management (1 Hour):

• Module 1: Management’s Role in Safety and Health

• Module 2: The Financial Impacts of Risk Management

• Module 3: Hazard Analysis Methodologies

• Final Exam

Personal Protective Equipment Program and Selection (PPE) – This course is meant to introduce workers to the contents of a PPE program, and outline considerations for selecting proper PPE. This training should be combined with company specific training with the actual PPE to be used and include sufficient hands-on training and practice.

Health and Safety Management (1 Hour):

• Module 1: Personal Protective Equipment (PPE) Program

• Module 2: Personal Protective Equipment (PPE) Selection

• Final Exam

Asbestos Awareness – This Asbestos Awareness course provides students with an understanding of the harmful effects of asbestos, the knowledge to avoid asbestos exposures, and the ability to identify work areas where asbestos may be present. It will also familiarize them with OSHA and EPA standards designed to protect workers on the job site, among many other important topics.

Asbestos Awareness (1 Hour):

• Module 1: Asbestos

• Module 2: Asbestos Awareness

• Final Exam

This Online Course Bundle is approved for 5 CE credits with Oregon CCB.

 

Respiratory and Personal Protective Equipment Training

This Respiratory and Personal Protective Equipment (PPE) Training bundle consists of two courses:

OSHA Respiratory Protection

Per 29 CFR 1910.134, OSHA requires the employer to provide effective training to employees who are required to use respirators. The training must be comprehensive, understandable, and recur annually and more often if necessary.

This course is designed to help workers to meet the OSHA Respiratory Protection training requirement.

Respiratory Training Course Outline (4 Hours):

• Module 1: Respiratory Protection Course Overview

• Module 2: Introduction to Respiratory Protection

• Module 3: Types of Respiratory Protection

• Module 4: Respirator Selection and Use

• Module 5: Respirator Medical Evaluation

• Module 6: Respirator Fit Testing

• Module 7: Respirator Training and Program Guidelines

• Module 8: Respirator Maintenance and Care

• Module 9: Video – Respirators

• Final Exam

OSHA Respiratory Protection

Per 29 CFR 1910.132(f)(1): The employer shall provide training to each employee who is required by this section to use PPE. Each such employee shall be trained to know at least the following:

•  When PPE is necessary;
•  What PPE is necessary;
•  How to properly don, doff, adjust, and wear PPE;
•  The limitations of the PPE; and
•   The proper care, maintenance, useful life and disposal of the PPE.

This Personal Protective Equipment (PPE) Program and Selection Training course is designed to be used as part of a Personal Protective Equipment (PPE) Program for all employees who wear PPE as part of their job.

This course is meant to introduce workers to the contents of a PPE program, and outline considerations for selecting proper PPE. This training should be combined with company specific training with the actual PPE to be used and include sufficient hands-on training and practice.

PPE Course Outline (1 Hour):

• Module 1: Personal Protective Equipment (PPE) Program

• Module 2: Personal Protective Equipment (PPE) Selection

This Online Course Bundle is approved for 5 CE credits with Oregon CCB.