Commercial auto insurance for contractors in South Texas
Tools in the truck, employees behind the wheel, and the certificate requirements that come with every general contractor.
For most contractors the truck is the business. It carries the crew, the tools and the materials, and it is the thing that puts you in front of a customer. It also generates most of your liability exposure.
What a contractor's policy usually needs
- Liability limits high enough for the contracts you sign, commonly 1,000,000 dollars combined single limit
- Coverage for employees driving, not just the owner
- Hired and non-owned auto, for rented trucks and crew vehicles
- Physical damage on owned trucks and trailers
- Additional insured and waiver of subrogation endorsements, which general contractors ask for by name
Tools and equipment are not covered by auto insurance
This surprises people every week. If your truck is broken into and 6,000 dollars of tools are taken, the auto policy covers damage to the truck, not the contents. Tools are covered by an inland marine or contractors equipment policy, which is inexpensive and worth scheduling by item for the expensive pieces.
Trailers
Owned trailers should be listed on the policy with their own values. Liability generally follows the towing vehicle, but physical damage on the trailer does not happen automatically. If you borrow or rent trailers, ask about trailer interchange coverage.
Certificates and the paperwork loop
General contractors will not let you on the site without a certificate naming them as additional insured. Get the contract language to your agent before you sign, because some requirements cost money to satisfy and it is better to know that during the bid.
Who is driving
Carriers rate contractor policies heavily on driver records. One employee with a suspended license or a recent DWI can move the whole policy or get it declined. Pull motor vehicle records before hiring drivers, and again annually.
Personal trucks used for work
A sole owner with a personal truck may be fine on a personal policy today, and not fine the day a helper drives it. This is where claims get denied.
We work with trades
Bring your vehicle list, your driver list and the certificate requirements from your GC. Call (956) 687-3334. Se habla español.
Common follow-up questions
Do I need commercial auto for one pickup?
If it is titled to the business or driven by employees, yes. A sole proprietor driving their own truck alone may not, but tell your carrier what you do.
Will my general liability policy cover a truck accident?
No. General liability excludes auto claims. The two policies are designed to work together and neither replaces the other.
What limits do general contractors usually require?
One million dollars combined single limit is the common requirement, sometimes with an umbrella above it. Read the contract, because the number varies.
Want this looked at properly?
We are an independent agency in McAllen serving Hidalgo, Cameron and Starr counties. No cost to talk it through.
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