Decorative Metal Contractor Insurance
As an artisan contractor, you may encounter requests from commercial customers to have commercial auto insurance, even if you do not own a fleet of vehicles or have employees. While this requirement may appear puzzling at first, understanding the underlying reasons is crucial. In this blog post, we will explore the importance of commercial auto insurance from the artisan contractor's perspective, highlighting the potential liability exposures faced by both the contractor and the commercial customer when this coverage is lacking.
Understanding the Artisan Contractor's Perspective
Artisan contractors often rely on their personal vehicles or occasionally rent or borrow vehicles to fulfill their contracted work. While personal auto insurance may cover some aspects, commercial customers prioritize risk management and compliance with legal obligations. Here are the key reasons why commercial customers insist on commercial auto insurance:
1. Liability Protection: Commercial customers, including general contractors and property owners, are cautious about potential liability risks associated with accidents or property damage caused by vehicles used during contracted work. If an incident were to occur where the artisan contractor is found at fault while driving for business purposes, the commercial customer could be held liable for resulting damages. By requiring commercial auto insurance, commercial customers ensure an additional layer of protection against potential liabilities arising from accidents involving contractor-operated vehicles.
2. Adequate Coverage: Personal auto insurance policies often have limitations or exclusions for vehicles used for business purposes. Commercial auto insurance addresses these gaps by providing specialized coverage tailored to the unique risks associated with business vehicle use. It offers higher liability limits and comprehensive coverage options, ensuring the artisan contractor has the appropriate level of protection.
3. Legal Compliance: Operating vehicles for business purposes involves legal obligations and regulations. Commercial auto insurance is typically a legal requirement for vehicles used in business activities, irrespective of whether the contractor owns a dedicated fleet or has employees. By requesting commercial auto insurance, commercial customers ensure that the artisan contractor complies with these legal obligations, reducing the risk of penalties or legal repercussions.
Read more about: What Contractors Need to Know About Commercial Auto Insurance
Exposures to Liability: Hired and Non-Owned Auto Coverage
To further emphasize the significance of commercial auto insurance, it is important to consider the potential liability exposures faced by both the artisan contractor and the commercial customer when hired and non-owned auto coverage is lacking. This coverage extends liability protection to vehicles that are rented, borrowed, or used for business purposes but not owned by the contractor. Here's why it matters:
1. Protection for Accidents and Damages: When an artisan contractor uses a vehicle that is not owned by them, such as a rental or borrowed vehicle, there is always a risk of accidents or damages occurring. Without hired and non-owned auto coverage, the liability for such incidents could extend to the artisan contractor, as well as the commercial customer. By securing this coverage, the artisan contractor ensures that any claims arising from accidents or damages while using non-owned vehicles are appropriately covered, mitigating potential liability concerns for both parties.
2. Coverage for Employee Vehicles: In some cases, artisan contractors may have employees who use their personal vehicles for business purposes. If an accident were to occur while an employee is using their own vehicle for work-related activities, the liability could extend to the artisan contractor and the commercial customer if hired and non-owned auto coverage is absent. This coverage ensures that any claims arising from accidents involving employee-owned vehicles used for business purposes are adequately covered, reducing the potential liability exposures for both parties.
Commercial auto insurance is a vital component for artisan contractors, regardless of whether they own a fleet of vehicles or have employees. It addresses the liability concerns of commercial customers, ensures adequate coverage for business vehicle use, and helps the contractor comply with legal requirements. Additionally, the presence of hired and non-owned auto coverage offers an extra layer of protection, minimizing potential liability exposures faced by both the artisan contractor and the commercial customer. By recognizing these considerations and securing the necessary coverage, artisan contractors can meet customer expectations, protect their business, and foster strong and secure relationships in the commercial contracting industry.
Discover the importance of Commercial Auto Insurance in meeting customer expectations and addressing liability exposures. Take action now by calling PBIB at 877-893-7629 or visiting our website pbibins.com. Safeguard your business, exceed customer expectations, and drive toward success with the right insurance coverage in place!
