Use whenever contracted work requires the use of a licensed vehicle on public roads, or on your property. This includes driving to and from (including rare to occasional driving such as to meetings), parking and using contractor´s vehicles at work site.
Use whenever contractor transports mobile equipment to the work site. (CGL insurance does not cover the transport of mobile equipment.) Ensure automobile liability includes coverage for owned, non-owned or hired vehicles. Require CGL coverage for the liability exposure arising from the contractor´s operation of the mobile equipment. Note: Mobile equipment is not considered to be an automobile, therefore an automobile liability policy provides no coverage for the operation of this equipment.
Do not require if contract performance involves no driving at all (NOTE: It is rare for contracted work to involve no driving at all. For example, there may be occasional planning meetings the contractor must drive to).
Use of personal automobile insurance instead of commercial business automobile insurance may be appropriate for sole proprietors. Note: The sole proprietor must either carry a business use endorsement or insure that business use is covered under their personal auto policy.
If contractor transports hazardous substances, waste, and/or materials require pollution liability coverage.
Goods with no services: Here is some guidance related to shipment of the good and if automobile liability insurance should be requested:
If the contractor is responsible for shipping the good(s) and we do not take ownership/title of the good(s) until it is received, and the contractor uses an outside delivery company/motor carrier to deliver the good(s), we do not need to request auto liability or motor carrier cargo liability related to shipment of the good(s). The contractor remains responsible for the good(s). If the good(s) is damaged during shipping, we will still hold the contractor responsible for the good(s).
If we are responsible to arrange/provide shipping of the good(s) and will be using an outside delivery company, a services contract should be put in place with that outside delivery company that will include, among other things, auto liability and motor carrier cargo liability.