Does contractor insurance cover commercial vehicle?


Today, the number of contractors or third party service providers is gradually increasing. Most professionals like engineers and architects get the services of this workforce for their residence and building construction projects. Contractor liability insurance will protect you, as a contractor, from any damage or accident claim made against you during the course of their project.

Auto liability coverage on a commercial vehicle is usually not included in a contractor liability insurance policy. All commercial vehicles that is part of the contractor's business can be covered by way of an endorsement to the policy that specifically adds these commercial vehicles to the coverage.

A typical contractor insurance policy will cover 3 elements - yourself, the company or the person you are contracted to, and any member or person directly affected by your work. Usually, contractor insurance covers general liabilities such as:

  • Property damage will protect your contracting business from any damage you, your workers or the equipment you use to another party's property. For instance, you work as a window building contractor and a window pane that is being installed fell onto a vehicle, the owner of the vehicle can claim for damage to his property. You will use the property damage component of your insurance to help pay for the damages.
  • Bodily injury will cover any physical accidents caused during the duration of your project. Medical protection will shoulder your medical expenses and other legal compensation costs.
  • Product liability. In some cases, this is included in the policy to cover for liability caused by the contractor's product or service.

In some states, contractors are required to be covered with general liability insurance. Also, some companies who take on a contractor will also require liability insurance as well as other relevant coverage.

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