When many contractors hear the term “auto liability,” they think it doesn’t apply if they don’t own company vehicles. Unfortunately, that’s not the case. Even if you don’t have trucks or vans titled in your company’s name, your business still faces serious auto-related exposures that can lead to costly claims. Contractors who overlook these risks can find themselves uninsured and exposed to lawsuits.
Below are 8 auto exposures every contractor should know about:
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1. Employee Use of Personal Vehicles for Business
If an employee drives their own car to pick up materials, visit job sites, or run errands for the company, your business can be held liable for an accident. Personal auto insurance may not provide adequate protection for business-related use, leaving your company vulnerable.
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2. Rented or Leased Vehicles
Sometimes a contractor rents a truck for a day to haul materials or equipment. If there’s an accident, the rental company will pursue you for damages. Without the right “hired auto” coverage, your company could end up paying out of pocket.
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3. Loading and Unloading
Even if your employee never drives, they may still be at fault during loading or unloading a vehicle. Dropping heavy equipment on a third party’s car or injuring someone in the process can trigger liability.
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4. Subcontractor Driving on Your Behalf
If you send a subcontractor to pick up supplies or transport materials and they cause an accident, your business could be named in the lawsuit. Courts often go after the deepest pockets—and that may be your company.
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5. Mobile Equipment That Hits the Road
Contractors often use skid steers, forklifts, or other mobile equipment that may cross a public street. Even if it’s not a traditional “vehicle,” once it’s on the road, it can trigger auto liability exposure.
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6. Job Site Visitors and Parking Lots
If you control a job site, visitors, delivery trucks, or vendors may park or maneuver vehicles on the premises. Accidents involving third parties can create liability for your company if negligence is alleged in how the site was managed.
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7. Transporting Employees
If your foreman drives crew members to a job site in his own vehicle and gets into an accident, your business may be pulled into the claim. Injuries could lead to both auto liability and workers’ compensation issues.
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8. Borrowed Vehicles
Sometimes a contractor borrows a vehicle from a friend, relative, or another company for a quick task. If an accident occurs, the owner’s insurance may not fully cover the claim, and your company could be responsible for the balance.
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Why This Matters for Contractors
Auto liability doesn’t disappear just because your business doesn’t own vehicles. The exposures above are real, frequent, and costly—and too many contractors assume they are covered when they are not. The good news is that with the proper hired and non-owned auto liability coverage, you can protect your company against these risks.
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Why Contractors Choose BGES Group
At BGES Group, we specialize in construction insurance and understand the unique exposures contractors face—auto liability included. Unlike “factory-style” insurance agencies that rush through your coverage, we take the time to review policies carefully, identify hidden gaps, and make sure your business is fully protected.
More and more contractors are turning to BGES Group because we know construction inside and out. Our goal is to help you avoid surprise claims, save money, and have the peace of mind that your insurance program actually works when you need it most.
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Contact BGES Group
If you’re a contractor and want a free review of your auto liability and overall insurance program, call us today. We’ll walk you through your exposures and help you make sure your company is protected the right way.
📞 Gary Wallach, BGES Group
📱 914-806-5853
🌐www.bgesgroup.com