Learn about owned, non-owned, and hired automobile insurance for trade contractors.
Read why trade contractors need more than business-owned automobile insurance.
The main stage for trade contractors is the job site. Pieces and parts are routinely put together, either for repair, renovation, or new construction. Those pieces and parts don’t magically appear at job sites; they get there via automobile. Today’s focus is the basic application of automobile insurance from the perspective of trade contractors.
Business Owned Automobile Insurance: Whether trade contractors own one work vehicle or a full fleet, they need automobile insurance specifically describing the covered vehicles for both comprehensive and collision coverage and liability coverage. Your independent insurance agent at Richey-Barrett Insurance always recommends that both uninsured and underinsured motorist coverage be purchased. Remember to contact your agent promptly with any additions and/or deletions to your fleet. Optional deductible and limit of liability quotes are available so each trade contractor may consider what best fits his/her/their needs. Inevitably, the work of a trade contractor will involve the use of a non-owned or hired vehicle. The business automobile insurance policy does not automatically cover non-owned or hired vehicles. These coverages must be separately purchased.
Non-owned Automobile Liability Insurance: Suppose an employee of the trade contractor uses his/her personal vehicle to go to the local supply store to pick up more material for the job or replace a tool that broke on the job and is needed to continue. If the employee is involved in an automobile accident at any point during that trip to and from the job site, the trade contractor may be legally liable for damages and should have coverage for this exposure. Non-owned auto liability is excess over the employee’s personal auto liability coverage. Optional liability limits are available. The rating basis is a flat charge, adjusted per employee excess of a threshold number of employees.
Hired Automobile Insurance: Suppose the trade contractor rents a large truck to move material to a job site. The trade contractor is responsible for property damage to the rented vehicle as well as liability damage arising out of the use of the rented vehicle. Even if the need for a rented vehicle is rare, having this inexpensive coverage in place is well worth the heartbreak of a potential financial fiasco. Hired automobile insurance DOES NOT INCLUDE autos borrowed or rented from partners or employees of their family members.
Hired Auto Liability: $1,000,000.00 is standard; options are available.
Premium charge is minimal.
Hired Auto Physical Damage:
Comprehensive, i.e. fire, theft, vandalism, malicious mischief
Collision, i.e. damage caused by hitting something
A separate deductible applies to Comprehensive, and a separate deductible applies to Collision. Both coverages are recommended; premium charges are minimal.
Actual insurance policy conditions, terms, and limits always apply.
Richey-Barrett Insurance is your Trusted Choice Independent Insurance Agent for trade contractors. We are experienced in insuring trade contractors through quality insurance companies.