For many business owners and owner-operators, especially those just starting out, it may come as a surprise that personal insurance policies generally exclude coverage for business activities.
Most insurance carriers draw a clear line between personal and commercial lines, meaning property damage, injuries, or other liabilities resulting from doing business are not covered.
Unfortunately, it’s a lesson that’s often learned too late.
And even for those who have commercial insurance, there are often blind spots in the coverage—they may be working outside of the scope of their current policies without even knowing it, or their current agent has failed to identify all risk exposures.
“Many people I speak with, even the ones who have been in business for years, don’t know how to properly shop for commercial insurance,” said Tim Holland, Commercial Lines Sales Executive for SELCO Insurance Services. “That’s where I can step in to help with much more than just trying to find the best rate.”
Holland said gaps in coverage are especially wide when it comes to general contractors and commercial truckers. Read on to see how he can help close those gaps to ensure they can run a safe, smooth operation.
Why commercial insurance is crucial
When something goes wrong and insurance doesn’t cover what business owners and business-operators felt it would, they end up footing a large portion, or all, of the bill. Here are a few common misconceptions Holland encounters:
- Contractors:
- Using their vehicles for business activities and discovering their personal insurance policy isn’t sufficient to cover their liability in the event of an accident.
- Undertaking projects, tasks, or trades they’re not authorized to perform (e.g., a landscaper installing irrigation systems).
- Truckers:
- A belief that their motor carrier’s policy is “all-in-one” insurance, when in fact there are times when separate coverage is needed, such as for off-duty driving.
- Frequently underestimating the potential savings from a driver safety program. This oversight can have a significant impact on their annual earnings.
Not only can Holland help fulfill those coverage needs, but he also has access to multiple carriers that can offer similar options. “And that creates competition, which works to the client’s advantage,” he added.
So, what is covered by general contractor and commercial trucking plans?
The nuts and bolts of general contractor insurance
General contractor insurance protects construction businesses from risks like third-party injuries, property damage, and defects from a completed project. Here’s a breakdown of some of the key components of general contractor insurance:
- General liability. Protects against claims of bodily injury (e.g., a visitor slips) or damage to property not owned by the contractor.
- Completed operations. Covers liability for damages or injuries occurring after a project is finished, like if an installed roof leaks months after the job.
- Tools & equipment. Replaces or repairs stolen, damaged, or vandalized tools and equipment, ranging from hand tools to bulldozers.
- Workers’ compensation. Mandatory in 49 states, including Oregon, workers’ comp covers medical expenses for employees injured on the job.
The mechanics of trucking insurance
Commercial trucking insurance protects trucking businesses, owner-operators, and fleets from financial losses due to accidents, damage, cargo loss, and liability claims. In Oregon, this insurance is required—truckers must provide proof of liability and cargo insurance to the Federal Motor Carrier Safety Administration (FMCSA) and the Oregon Department of Transportation (ODOT).
“This ensures they at least have the appropriate auto liability policy in place,” Holland said, “but they may still have massive gaps in their coverage.”
Holland can help fill those voids. Here is a snapshot of what truckers can expect from commercial trucking insurance:
- Primary liability. Required by law, primary liability protects against third-party injuries and property damage if the insured driver is at fault.
- Physical damage. Covers repairs to trucks and trailers from collisions or rollovers, fire, theft, vandalism, and weather.
- Motor truck cargo. Protects against lost, stolen, or damaged freight. This coverage is essential for covering cargo costs and associated expenses like cleanup and pollution.
- Driver safety incentives. Practicing safe driving habits may result in considerable savings through telematics-based insurance.
General contractor and trucking policies merely scratch the surface of the types of commercial coverage that SELCO Insurance Services can help secure for general contractors and truckers. They also have access to policies for workers’ compensation, general liability, commercial property, cyber liability, and much more for most types of businesses. Contact us today to find out how we can help you save on all types of commercial insurance, including for general contractor and commercial trucking.
