Your roofer or HVAC tech is driving to the third job site of the day, ladder rack loaded, van full of tools, when another driver runs a red light. The truck is totaled. A passenger in the other car is seriously hurt. If that van is covered only under a personal auto policy, you could be facing a six-figure claim with zero coverage. That scenario plays out for contractors in Northeast Ohio more often than most owners expect.
Yes, Ohio Law Requires Commercial Auto Coverage for Business Vehicles
Under Ohio Revised Code Section 4509.51, any vehicle used in contracting operations must carry minimum liability coverage of $25,000 per person / $50,000 per accident for bodily injury, and $25,000 for property damage. Those are the state minimums, but they are rarely enough in practice.
Here is where most contractors get caught off guard:
- Many commercial contracts and municipal permits require $1,000,000 per occurrence in auto liability before you can even pull a permit or get on an approved vendor list.
- Cities like Cleveland and surrounding municipalities often mandate higher limits as a condition of licensing.
- General contractors hiring subs frequently require a Certificate of Insurance (COI) showing commercial auto coverage at specific limits before work begins.
If your crew is driving to job sites, hauling materials, or using company-owned trucks and vans for any business purpose, a commercial auto policy is not optional. It is a legal and practical requirement.
Why Your Personal Auto Policy Won’t Save You
This is the most common and costly mistake contractors make. A personal auto policy covers commuting and personal errands. It does not cover:
- Driving to and between job sites during the workday
- Hauling tools, materials, or equipment for business purposes
- Vehicles titled to an LLC, corporation, or partnership
- Employees or subcontractors driving your vehicles
- Rented or borrowed vehicles used for work (those need Hired and Non-Owned Auto coverage, a separate endorsement)
Personal insurers can and do deny claims when a vehicle is used for business at the time of an accident. That denial does not stop the injured party from suing your company. It just means you are absorbing the loss yourself.
One additional coverage worth knowing: Hired and Non-Owned Auto (HNOA) coverage protects your business when an employee uses their personal vehicle or a rental vehicle for work. If your crew occasionally drives their own trucks to a job, HNOA fills the gap between their personal policy and your business liability.
What a Commercial Auto Policy Actually Covers (and What It Does Not)
A standard Business Auto Policy (BAP) covers the vehicles your roofing or HVAC company owns and uses for operations. For most contractors in this area, that means pickup trucks, cargo vans, flatbeds, and box trucks.
Typically included:
- Bodily injury and property damage liability if your driver causes an accident
- Collision and comprehensive coverage for your vehicles (if you add physical damage)
- Medical payments for occupants of your vehicle
- Uninsured/underinsured motorist coverage
Often NOT included, and worth asking about separately:
- Tools and equipment in the vehicle — these are typically covered under an Inland Marine or Tools and Equipment policy, not auto
- Materials being transported for a specific job may require Motor Truck Cargo coverage depending on what you carry
- Trailers may need to be scheduled separately
Tool theft from a locked van is a real exposure for roofing and HVAC crews. A single five-figure tool loss can shut down a crew for days. Do not assume your auto policy handles it automatically.
One more thing worth mentioning given current market conditions: commercial auto rates have increased for 58 consecutive quarters as of 2025. Nuclear verdicts over $10 million jumped 52 percent from 2023 to 2024. If your limits are not keeping pace, a serious accident could exceed your coverage and reach your personal or business assets. An umbrella policy is worth a serious conversation for any contractor running more than one vehicle.
The Bottom Line
- If a vehicle is used for your contracting business, it needs commercial auto coverage. Personal policies will not respond to a business-use claim, and the financial exposure is too significant to leave to chance.
- State minimums are a starting point, not a finish line. Most clients, GCs, and municipalities will require $1 million in auto liability. Make sure your policy reflects what your contracts actually demand.
- Check your gaps: tools, hired vehicles, and trailers. A commercial auto policy is one piece of a complete contractor insurance program. Tools and equipment, HNOA, and umbrella coverage each address exposures that a BAP alone does not cover.
If you are running a roofing or HVAC operation in Northeast Ohio and you are not sure whether your current auto coverage is structured correctly, it is worth a quick review. Small gaps in coverage can turn into very large problems after an accident. You can get a quote or ask questions at upiccommercial.com/quote or call Andrew Betts directly at (216) 714-3377. A 15-minute conversation can tell you a lot about where you stand.