Why your construction business needs the best commercial auto coverage you can get

Posted by John Cofini on Wed, Nov 20, 2013 @ 11:59 AM

You’ve invested a lot of time, money, and hard work into building your construction and contracting business, and having the right New York business insurance coverage is a crucial part of protecting that investment.

And if you operate service vehicles that transport people and materials to a jobsite, you need commercial auto coverage. In fact, commercial auto coverage should be viewed as an essential part of your overall business protection and risk management strategy.


Because a single accident can quickly rack up hefty property damage, medical, and legal expenses. Without the right commercial auto coverage, you could easily be risking your bottom line and the future of your business every time you or an employee travels for company business.

What does Commercial Auto cover?
A commercial auto policy basically accomplishes the same thing as your personal auto policy: it provides coverage to repair or replace a vehicle damaged in an accident and will pay the claims of any third-party injured in the accident.

But don’t make the mistake of neglecting to purchase commercial auto coverage because you think your personal auto insurance will cover you. Personal auto policies exclude many business uses and vehicle types. So it’s crucial to have the proper coverage to avoid the potentially high costs of vehicle repairs, medical expenses, and potential lawsuits arising out of an auto accident.

You should also strongly consider purchasing “non-owned auto” insurance, which will provide coverage for your business when your employees use their personal vehicles for business use. It also provides coverage when you use vehicles you don’t own, such as leased or rented vehicles.

How do you know if you need this coverage?
You probably need a commercial auto policy if you:

  • Use vehicles to transport goods or people or conduct a service

  • Haul considerable weight in tools or equipment or tow a trailer to conduct your business

  • Have employees that operate company vehicles

In general, if you use vehicles for tasks related to your construction and contracting business (other than commuting), you likely need a commercial auto policy, regardless of how often you use those vehicles.

Also, depending on your operations, you may need certain endorsements to your policy to fully protect your business. Here are some endorsements to consider: 

  • Automatic coverage for newly acquired vehicles

  • MCS-90 endorsement to satisfy the 1980 Motor Carrier Act

  • Drive other car coverage for company executives who have no personal auto policy

  • Medical payments

  • No fault benefits

  • Personal injury benefits

  • Blanket additional insured, as required by contract

  • Advance notice of cancellation

  • Named insured to include joint ventures and partnerships

If you need help figuring out exactly what coverage you need, see the New York construction insurance experts at BNC Insurance and Risk Advisors. With more than 150 years of combined experience in the New York construction business, we understand the specific demands and risks associated with your industry. We’ll help you sort out the best coverage options and make sure your construction business keeps rolling smoothly along.

Want to know more about how we help contractors? Download our construction case studies.

Tags: construction insurance, New York construction insurance, new york business insurance, commercial auto coverage, commercial auto policy, non-owned auto coverage