Why commercial auto liability insurance is critical for independent contractors

Your job as an independent contractor in delivery or transportation is essential. But have you thought about what would happen if you had an accident while working?  

Delivery drivers have one of the highest rates of work-related injuries, with over 2.8 million nonfatal injuries in 2022 alone. Many delivery drivers think their personal auto insurance covers them on the job, but it usually doesn’t. This is why commercial auto liability insurance is so important. 

Without this insurance, you might have to pay for repairs, medical bills, and legal fees out of your own pocket if you get into an accident while working. This could cost you thousands of dollars. But with commercial auto liability insurance, you’re protected. This type of insurance covers the costs if you cause an accident so that you can keep more of your hard-earned money. 

Why commercial auto liability insurance is necessary

Imagine this: You’re out on a busy day, making deliveries, and everything is going smoothly. Suddenly, out of nowhere, you get into a fender-bender with another car. The other driver is okay, but their car has some damage. You start to worry about what happens next. If you only have personal auto insurance, you might be in trouble. Personal policies usually don’t cover accidents that happen while you’re working. 

Gaps in personal auto policies 

Many independent contractors mistakenly believe that their personal auto insurance covers them while they are working. Unfortunately, most personal auto policies exclude coverage for business use, leaving a notable gap in protection. This means that if you get into an accident while making deliveries, your personal insurance may deny the claim, leaving you responsible for damages and medical expenses caused to another person or their vehicle. 

Financial risks of inadequate coverage 

Operating without the proper commercial auto insurance can lead to severe financial disasters. Accidents that occur while on dispatch could result in substantial out-of-pocket expenses. Without adequate coverage, you might find yourself paying for vehicle repairs, medical bills, and legal fees, which can quickly add up and potentially devastate your finances.  

The challenge is that traditional commercial auto liability policies are expensive and can leave you paying for more than you need. Luckily, ICM Insurance Services, LLC helps connect independent contractors enrolled in Openforce with an affordable solution.  

Introducing While Under Dispatch insurance 

While Under Dispatch insurance is a specialized commercial auto liability policy designed to cover independent contractors during their working hours. This policy fills the gap left by personal auto insurance, providing the necessary protection when you're on the job. It includes coverage for bodily injury liability and property damage liability, ensuring that you're protected if you cause an accident that results in injuries or property damage to others. 

Affordability and flexibility 

Traditional commercial auto policies are often expensive and may require hefty down payments. However, Openforce, in partnership with ICM Insurance Services, offers a more affordable and flexible solution. With extremely competitive group rates and no expensive down payment, a While Under Dispatch policy allows you to pay insurance premiums only for the weeks you work.  

If you don't work, you don't pay – it's that simple. 

Ease of enrollment and use 

Openforce's platform simplifies the process of enrolling in and managing your insurance coverage. The policy ensures there are no hassles or lapses in coverage, making it easy for you to stay protected. Moreover, the insurance policy covers vehicles under 26,000 lbs GVW, and you only need to maintain a personal auto policy for vehicle registration purposes. 

Reduced administrative burden 

Handling claims and tracking insurance details can burden busy independent contractors. The While Under Dispatch policy streamlines the paperwork process and provides support for managing claims so that you can focus on your work without worrying about complex insurance administration. 

Protecting your business with the right insurance coverage is crucial for independent contractors in the on-demand delivery and transportation industry. Having a While Under Dispatch policy in place gives you the peace of mind of knowing you’re covered while on the job while keeping more of your hard-earned money in your pocket.