Auto Insurance for a General Contractor

ShannonO

Expert
57
I have a contractor client with GL. He currently has the auto insurance for the truck he uses in his business under his personal insurance policy. I am trying to convince him that he really should have a commercial policy for that pickup truck because he uses it for work, hauling materials to jobsites, towing a trailer for power washing, etc. But current agent on the personal does not feel he has any coverage issues by keeping the vehicle on the PAP (this same agent also has their brand new home still insured under a builder's risk policy despite the fact they are residing in the dwelling and have now rented out their former dwelling).

Anyone have any thoughts on what you would say if this were your client?
 
Is he the only driver of the vehicle? Titled in his name? Insured for business use on his personal policy?

Hard to say, but he might be okay with it on his personal policy, as long as it's insured correctly. From what you described, it would work, at least with some carriers. Others would say no.

Dan

P.S. I don't know anything about Washington.....
 
We get a lot of clients who like to conceal the fact that they use their commercial vehicles for work purposes. We usually start asking if they have any tool boxs or racks on their truck/van. And then we ask them what their occupation is. If it is apparent they are using their vehicles for work we offer them both the business and personal use quotes. Usually the business is not much more than the personal if they are the ones driving that vehicle. Most of the time the difference is so little they take up the commercial policy.
 
some companies offer an artisan policy. its mainly for people like sales people and independent contractors who use their car for work but would not be considered full on commercial.
 
you can put a vehicle on a PAP and listed as business, as long as they are the only driver, call your U/W and ask
 
same here in Pa...except our commercial rates are normally lower than the private passenger business use rate...that motivates many to do the "right" thing:1wink:
 
Each carrier has different rules about business use vehicles on a personal policy. I have some carriers that are fine with it, I have some that say no way, I have some that say, choose which ever you want.
 
The question of the business use vehicle has already been answered, but let me address the home policy that is still a course of construction policy.

Some companies do course of construction by issuing a standard home policy with an endorsement for the course of construction and/or to cover building materials. What happens with these is that they automatically renew as a standard home policy without the endorsements when the first term is up. So you might be dealing with something like that.
 

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