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April 25, 2024

Commercial Auto for Independent Contractors 

green and white vintage trucks with commercial auto insurance

Vehicles used for business purposes play a crucial role in day-to-day business for many independent contractors. Whether it’s a delivery van, a personal car used for business errands, or a heavy-duty truck, independent contractors need protection from the potential financial consequences of accidents.

Commercial auto insurance can help cover numerous risks, including third-party liability for property damage and injuries. Depending on the value of the vehicle, many agents also recommend purchasing physical damage insurance, including comprehensive and collision coverage, to help protect the vehicle.

Why Independent Contractors Need Commercial Auto Insurance

Independent contractors often use their vehicles to perform their work. Whether delivering goods, transporting tools and equipment, or traveling to client locations, contractors are exposed to certain risks. A commercial auto insurance policy may help cover the costs if an accident occurs during these business-related trips.

Personal auto policies don’t typically provide appropriate protection for accidents and incidents that happen while conducting business. Your agent can help you understand how your current coverage works so you can determine how best to amend your coverage to include commercial auto insurance.

Coverage Options for Independent Contractors

Commercial auto insurance offers several coverage options that can be tailored to the specific needs of independent contractors, including the following:

  • Liability coverage may help pay for another person’s medical bills or property damage if you’re at fault in an accident. Indiana companies that use vehicles, including independent contractors, must maintain minimum amounts of auto liability insurance.
  • Collision coverage may help pay to repair or replace your vehicle if it’s damaged in an accident, regardless of who is at fault.
  • Comprehensive coverage may help pay to repair or replace your vehicle if it’s damaged due to events such as theft, vandalism or weather-related incidents.
  • Uninsured/underinsured motorist coverage may help protect you if you’re involved in an accident with a driver who doesn’t have insurance or doesn’t have enough insurance to cover your costs.

The specific types of coverage you need will depend on the nature of your work, the type of vehicle you use and the particular risks you face as an independent contractor.

Contact Us

Understanding and choosing the right commercial auto insurance can be complex. It requires a deep understanding of your business operations, risk exposure and financial capacity. Contact SIA, LLC in Kendallville, Indiana, to find a policy that fits your needs.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.


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