Potential Commercial Auto Risks: Independent Contractors

Construction Fleet Liabilities > Using Independent Contractors

In our previous post, we discussed some of the major risk factors that construction business owners face in terms of who they let drive their company vehicles. Getting from point A to point B is a huge factor in everyday operations, but knowing who you allow behind the wheel of your company fleet can minimize risk and ultimately protect your bottom line. In this article, we’ll discuss how you can protect your company and how your contractors can achieve peace of mind, as well. Most importantly, make sure your entire operation and your employees are covered with a comprehensive New Mexico Commercial Auto Insurance policy, which is part of our comprehensive Construction Insurance program.

You likely have a slew of contractors who you utilize for your construction business. However, rather than letting them drive your company vehicle, where they are not a named driver and therefore not covered, it’s best if you require them to carry their own insurance policies.

According to Lightship Insurance, several types of commercial liability policies are available for both ICs and freelancers, although what is needed depends on your line of work, job functions, and other factors (such as whether you see customers at your own place of business or drive a vehicle solely for work).

Commercial auto insurance can be purchased by your contractors to protect their commute and passengers while on the job. For someone to drive your commercial vehicle, they would need to be an experienced and safe driver and be named on the policy. If not, the insurance company reserves the right to withhold benefits in the event of an accident.

In addition, professional liability insurance should be carried in order to prevent your company from absorbing losses from potential lawsuits on their behalf.

Often referred to as professional indemnity insurance, and sometimes as independent contractor liability insurance, this policy protects against possible claims from clients, such as a costly mistake that the contractor may be liable for. It provides liability coverage in different amounts, and helps cover costs of liability claims should the claimant prove contractor liability.

About Daniels Insurance, Inc.

Daniels Insurance, Inc. provides expertise in both Owner Controlled Insurance Programs (OCIP) and Contractor Controlled Insurance Programs (CCIP). For more information about our construction insurance policies and more, contact us today at 800.530.8885.

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