COMMERCIAL AUTO COVERAGE EXPLAINED
What Commercial Auto Insurance Covers for Contractors
From liability to physical damage to hired and non-owned — here’s every coverage type your contractor commercial auto policy can include.
- ✓ Bodily injury and property damage liability
- ✓ Collision and comprehensive physical damage
- ✓ Hired and non-owned auto liability
- ✓ Medical payments and uninsured motorist
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Every Coverage Type on a Contractor Commercial Auto Policy
A commercial auto insurance policy isn’t a single coverage — it’s a package of coverages, each addressing a different risk. Understanding what each one does helps you build a policy that actually protects your business instead of just satisfying a certificate request.
Liability coverage is the foundation. It pays for bodily injury and property damage you cause to others in an accident. If one of your trucks runs a red light and hits another vehicle, your commercial auto liability pays for the other driver’s medical bills, their vehicle repairs, and any legal fees if they sue you. Most contractors need at least $1,000,000 in liability — many GCs require it on subcontractor certificates.
Physical damage coverage has two components: collision (damage from hitting something) and comprehensive (damage from everything else — theft, fire, weather, vandalism). If your work truck is totaled on the way to a job site, physical damage coverage pays to repair or replace it minus your deductible.
Hired and non-owned auto (HNOA) covers liability when your business uses vehicles it doesn’t own — rental trucks or employees’ personal vehicles used for work. Without HNOA, you have a significant liability gap whenever work happens in a vehicle that isn’t on your policy.
Uninsured and underinsured motorist coverage protects you when the other driver causes an accident but has no insurance or not enough to cover your losses. On a job where your truck is a critical piece of equipment, being put out of service by an uninsured driver can cost far more than the vehicle repair.
What Commercial Auto Does NOT Cover
Equally important is knowing what falls outside your commercial auto policy — so you can fill those gaps.
Tools & Equipment
Anything inside your vehicle — tools, machinery, materials — is not covered by commercial auto. You need an inland marine or tools & equipment policy for that.
Cargo You’re Hauling
Commercial auto does not cover damage to materials or products you’re transporting. Cargo coverage or an inland marine policy fills this gap.
Employee Injuries
Injuries to employees riding in your commercial vehicles aren’t covered by auto liability — that’s a workers’ compensation claim.
Pollution
Fuel spills or hazardous material releases from your vehicles typically require a separate pollution liability policy.
Why Contractors Choose Trade Safe Insurance
Independent Agency
We shop dozens of A-rated carriers to find you the best rate — not just the policy our parent company wants to sell.
20+ Years Experience
Two decades insuring contractors. We know the trades, the risks, and the coverage gaps your business can’t afford.
Same-Day COI
Need a certificate of insurance to start a job tomorrow? We issue same-day so you never lose work over paperwork.
Hard-to-Place Risks
Prior claims, SR-22s, specialty vehicles — we have markets for risks other agents turn away.
KEEP READING
Explore More About Commercial Auto Insurance
Personal vs. Commercial Auto Insurance →
What Commercial Auto Insurance Covers →
Hired & Non-Owned Auto Insurance →
Fleet Auto Insurance for Contractors →
How Much Does Commercial Auto Cost? →
DOT Requirements and Commercial Auto →
Do I Need Commercial Auto? →
Commercial Auto Insurance Guide →
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