Business Automobile Insurance provides liability, uninsured motorists, underinsured motorist, and physical damage coverage for all vehicles owned by you and used in your business.
Even if you do not own a single vehicle under the business name, you still need a policy that is called Non-Owned/Hired Auto Liability. This policy usually costs around $250 per year and protects you against lawsuits where your employee or your subcontractor used their own vehicle to run an errand on your behalf. That’s right, under most state laws any organization for whose purpose the errand is being run (the contractor) can be sued arising out of such auto accidents. Examples of such trips made by employees or subcontractors would be trips to the worksite or to the supply store.
Contractors that own heavy equipment such as cranes, cherry pickers, bulldozers, and front end loaders that are licensed for road use (or are subject to a compulsory or financial responsibility law or other motor vehicle insurance law) must insure such vehicles under a Business Auto policy.