What additional coverage might a contractor need beyond a basic Business Auto Policy?

Contractors who operate vehicles for business purposes typically have a basic Business Auto Policy to cover their owned, non-owned, and hired vehicles. However, this basic policy may not cover specific risks associated with transporting goods or materials. Therefore, specific endorsements for cargo become essential. These endorsements provide coverage for loss or damage to cargo being transported. Since contractors often handle valuable supplies or equipment while on the road, having this additional coverage helps protect their business interests against potential financial losses incurred from cargo-related incidents.

In contrast, while comprehensive business liability and employment practices liability insurance are crucial for protecting businesses from a variety of general risks and employment-related claims respectively, they do not specifically address the risks associated with vehicle transportation. Business interruption insurance, while important for coverage in cases of operational downtime, also does not apply directly to the risks related to transporting goods, making specific endorsements for cargo the most relevant additional coverage needed.