Contractors face a lot of liability risks throughout the course of an average workday. Working with heavy machinery on client projects can be hazardous, but what most people tend to overlook is the danger on the road.

Despite popular belief, personal auto insurance won't cover every accident that occurs, even if it occurs in a personal vehicle. Whether driving a work vehicle or personal vehicle, contractors travel a lot for work at the risk of wrecks and other accidents.

Commercial auto insurance provides coverage for vehicles owned or used by a business. Even independent contractors may qualify for commercial auto insurance.

Dave Millet Insurance Agency is dedicated to matching clients with fantastic coverage at affordable prices. We will help you determine how much coverage your vehicle needs for your contracting business and find the best price in your areas. To get started, call us at (504) 556-0809 or fill out a form for a free online quote today.

Your Commercial Auto Insurance For Contractors Questions

How Much Does Commercial Auto Insurance Cost for Contractors?

Rates for commercial auto insurance depend on more than your industry. They can also change depending on:

Location
Vehicle type, model and value
Credit score
Driving record

On average, a commercial vehicle costs between $600 to $2,400 a year. Delivery and cargo vans cost between $3,300 and $12,500 a year.

What Does Commercial Auto Insurance Cover for Contractors?

Commercial auto insurance policies can include a range of coverages. Some of these are also covered under personal auto insurance, but others are tailored for commercial vehicles.

Comprehensive Coverage covers physical damage to the vehicle not caused by collision. This may include fire, wind, hail, theft, vandalism and more.
Collision Coverage covers physical damage to the vehicle caused by collision with another vehicle or object.
Medical Payments Coverage helps with medical expenses for the driver and their passengers after an accident.
Liability covers bodily injury and property damage the driver may cause while operating the insured vehicle.

You can also purchase Hired and Non-Owned Coverage, which covers vehicles leased, rented or borrowed by your contracting company. To protect equipment and other items in transport, you may also purchase Inland Marine coverage, which compensates for equipment and items damaged or lost in transport.

When Do Contractors Need Commercial Auto Insurance?

Contractors need commercial auto insurance when they frequently use a vehicle for work-related purposes. Even if a contractor operates a personal vehicle, a personal auto insurance policy may not provide adequate coverage when the vehicle is being used for work. Commuting does not count as a work-related purpose. Work-related purposes for contractors would be traveling between clients, operating a commercial vehicle and transporting equipment.

How Much Commercial Auto Insurance Do Contractors Need?

Contractors should have enough auto insurance to cover the vehicle, their medical expenses and any damage they cause. In Louisiana, businesses must carry a certain amount of liability insurance: