If your business use several types of vehicles, it’s important that you classify them properly for insurance coverage purposes. Either of two policies might apply, depending on whether the policy defines the vehicle as “mobile equipment” or as an “auto.”
As you might expect, Commercial Auto insurance covers your autos, while your General Liability policy covers mobile equipment.
It’s clear that bulldozers and pickups are autos. However, when it comes to mobile cranes and other types of self-propelled equipment, the waters get a bit muddier – and if you attach a crane or drilling rig to a pickup or flatbed truck permanently things can get even trickier.
Why should you care? Two words: coverage and cost. Depending on the policy under which the vehicle falls, coverage might vary in both specifics and the amount available to pay claims. Because the two types of policies rate coverage differently, the premium will change. There’s one mistake you definitely want to avoid: In the confusion, make sure you don’t wind up paying for a single vehicle under both policies!
However, there’s a silver lining in this potential dark cloud. The specialists at our agency can review your list of vehicles and assign each its proper policy, without charging you twice. It’s our job to get things right. If you’re unsure whether your current coverage is treating your trucks as cranes, or the other way around, just give us a call. We’re here to serve you.
