Have a Construction Fleet? Here are the Concealed Exposures

A commercial fleet of vehicles is a requirement for any construction business, as commuting to and from job sites is part of your everyday routine. Requiring your employees to use company vehicles reduces your liability as an employer, but what happens if they disregard this rule? In this article, we’ll explore two main reasons your company is incurring exposures without even knowing. Before reading on, make sure your entire operation and your employees are covered with a comprehensive NewMexico Commercial Auto Insurance policy, which is part of our comprehensive Construction Insurance program.

Independent contractors.

In the construction sector, you might have a handful of subcontractors and independent contractors that you work with on an annual basis. If you hire independent contractors, you could be held liable for accidents they cause under your employment.

According to Risk Management Monitor, to reduce this exposure, ensure that each of your independent contractors has a valid auto liability insurance policy. Make sure the policy is in force throughout the duration of their contract with you. Additionally, be sure that their insurance carrier is financially stable. You can verify the insurance carrier’s financial strength at www.ambest.com.

Also, obtain a valid certificate of insurance from each contractor at the outset of your engagement and verify that coverage exists with their insurance agency.

To ensure the policy is active throughout the duration of their employment with you, check up on the policy’s activity during the job.

Using personal vehicles for company errands.

It’s a reality that many employees use their own personal vehicles for company errands or commuting to job sites. However, you can reduce your liability by requiring employees to use company vehicles, and obtaining an accurate driving record from each employee who is a named driver on the vehicle.

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.