As a New York contractor, your business vehicles are not just transportation—they are critical tools that support your daily operations. Protecting them with the right business auto insurance is essential for mitigating risks and safeguarding your bottom line. When purchasing coverage, you’ll need to consider the types of protection and limits that ensure adequate financial security in the event of an accident or other mishap.
Below, we explore the key coverages and limits contractors should prioritize, including additional options that can provide peace of mind. We also address the importance of conducting due diligence on drivers to avoid future complications.
1. Essential Coverages for Business Auto Insurance
a. Liability Coverage
Liability insurance is the cornerstone of any auto policy. It covers bodily injury and property damage that you or your employees cause while operating a business vehicle.
• Recommended Limits: New York contractors should aim for at least $1,000,000 combined single limit (CSL). For larger contractors or those working on higher-risk projects, higher limits may be necessary to meet contractual requirements or protect assets.
b. Uninsured Motorist (UM) Coverage
This coverage steps in if you or your employees are injured in an accident caused by a driver without insurance. In a state like New York, where uninsured drivers still pose a risk despite mandatory insurance laws, UM coverage is vital.
• Recommended Limits: Match your liability limits, ensuring sufficient protection for severe injuries or accidents.
c. Underinsured Motorist (UIM) Coverage
If an at-fault driver has insurance but their policy limits are too low to cover all damages, UIM coverage bridges the gap. This is particularly important for contractors who may face significant medical or repair costs after an accident.
d. No-Fault (Personal Injury Protection) Coverage
In New York, no-fault insurance—also called Personal Injury Protection (PIP)—is mandatory. It covers medical expenses, lost wages, and other costs for you and your passengers, regardless of who caused the accident.
• Minimum Requirement: $50,000 in PIP coverage is required by law, but higher limits may be advisable to protect against escalating medical costs.
2. Additional Coverages to Consider
a. Drive Other Car (DOC) Coverage
If you or your employees occasionally drive personal, rented, or borrowed vehicles for business purposes, DOC coverage extends your business auto policy to protect against liability and physical damage in those situations.
b. Full Glass Coverage
Contractors often face broken windows or windshields due to job site debris or vandalism. Full glass coverage ensures repairs or replacements are covered without a deductible, saving both time and money.
c. Rental Reimbursement
If a business vehicle is out of service due to an accident, rental reimbursement provides funds to rent a temporary replacement. For contractors, keeping operations running without interruption is critical, making this an essential add-on.
d. Towing and Roadside Assistance
Breakdowns happen, and towing larger vehicles can be costly. Towing and roadside assistance coverage ensures you’re not left footing the bill for towing, tire changes, or jump-start services.
3. The Importance of Driver Screening
When hiring employees with driving responsibilities, it’s crucial to conduct thorough background checks, including pulling their Motor Vehicle Report (MVR). The MVR provides a detailed driving history, allowing you to assess the applicant’s risk level.
Why This Matters:
• High-Risk Drivers: Hiring someone with a poor driving record can make your business a high-risk account for insurers, resulting in significantly higher premiums or even difficulty securing coverage.
• Claims Risk: Employees with a history of accidents or violations are more likely to be involved in future incidents, exposing your business to liability.
• Financial Consequences: Failing to vet drivers can turn into a costly nightmare, not only in terms of higher insurance costs but also due to potential claims.
By pulling MVRs before hiring, you can avoid these pitfalls and ensure your business auto insurance remains affordable and accessible.
4. Factors to Consider When Choosing Limits
Selecting appropriate coverage limits is just as important as choosing the right types of coverage. Contractors should evaluate the following:
• Business Size: Larger fleets or businesses with multiple vehicles may need higher limits to protect their assets.
• High-Risk Jobs: If your work involves transporting hazardous materials or operating in high-traffic areas, consider increasing liability and physical damage limits.
• Project Requirements: Many contracts specify minimum insurance requirements, so ensure your policy meets or exceeds these mandates.
5. Compliance with New York State Laws
New York contractors must comply with the state’s minimum auto insurance requirements:
• $25,000 for bodily injury per person
• $50,000 for bodily injury per accident
• $10,000 for property damage
However, these minimums are insufficient for most contractors. Higher limits provide better financial protection and are often necessary to meet contractual obligations.
6. Why Work with BGES Group?
Navigating the complexities of business auto insurance can be overwhelming, especially for contractors who need tailored policies. That’s where BGES Group comes in.
Who We Are
BGES Group specializes in helping contractors across New York, New Jersey, and Connecticut secure comprehensive and affordable insurance solutions. We understand the unique challenges contractors face and provide boutique-style services to meet your needs.
What We Offer
• Expert Advice: Decades of experience in the industry mean we can guide you to the best coverage options.
• Customized Policies: Whether you need business auto, general liability, workers’ compensation, or umbrella insurance, we craft policies tailored to your business.
• Competitive Pricing: Our strong relationships with top insurers allow us to secure the most competitive rates.
• Exceptional Service: From policy selection to claims management, our team provides hands-on support every step of the way.
Contact BGES Group Today
Don’t take chances with your business auto insurance. Let BGES Group help you find the right coverages and limits to protect your vehicles, employees, and business.
• Phone: 914-806-5853 – Gary Wallach
• Email: bgesgroup@gmail.com
• Website: www.bgesgroup.com
With BGES Group, you’ll get the personalized service and expertise you need to keep your business running smoothly. Contact us today to learn how we can help you stay covered and prepared for whatever comes your way!