Luis started his landscaping company in Olympia with one pickup and a mower. Eight years later, he has six trucks, four trailers, two skid steers, and a crew of eighteen during the busy season. Commercial maintenance contracts with property managers make up most of the work.
A property management client asked for an updated certificate showing $1 million of auto liability. Luis sent us his auto policy to check.
What he asked for
Confirmation that his commercial auto policy met the client's requirement.
What the review found
Three of six trucks were on the policy. The newer three were bought over two years and never added. Some commercial auto policies automatically cover newly acquired vehicles for a short window, but not indefinitely.
The trailers were not scheduled. Liability usually follows the towing vehicle, but physical damage to the trailers themselves, and the equipment strapped to them, was not covered.
The driver list was stale. Two drivers on the list had left. Four current drivers were missing, one with a recent at-fault accident and a speeding ticket. Carriers price and sometimes exclude drivers based on their records; an undisclosed driver is a problem at claim time.
The skid steers, mowers, and trimmers had no coverage anywhere. Equipment that moves between job sites is not covered by an auto policy or a building-based property policy.
Stop-gap was missing. Luis had L&I coverage for his crew, as every Washington employer must. He did not have stop-gap employers liability, which his client's contract and his umbrella carrier both required.
What we put in place
We rebuilt the commercial auto policy with every vehicle and trailer scheduled, the correct driver list, and a written procedure for adding vehicles and drivers the week they arrive. The driver with the recent accident went through the carrier's review and stayed on the policy with a note to revisit at renewal. The policy includes hired and non-owned auto for crew leads who sometimes use their own trucks.
We added an inland marine contractors equipment policy for the skid steers, mowers, and power equipment, covering theft from job sites and trailers.
We reviewed his general liability, confirmed the property manager was named as an additional insured, and added stop-gap employers liability, the Washington-specific coverage that fills the gap between L&I benefits and lawsuits against the business.
Why it mattered
That fall, a trailer came loose on Interstate 5 and damaged two cars. Because the trailer and the towing truck were both properly scheduled, the claim was handled as a routine auto claim rather than an argument about which vehicles were covered. Later that season, a skid steer was stolen from a job site over a weekend, and the equipment policy replaced it.
If you run a landscaping or outdoor services company
- Add vehicles and drivers when they arrive, not at renewal
- Schedule trailers, and insure the equipment on them separately
- Pull motor vehicle records on every driver, every year
- Washington employers need stop-gap on top of L&I
More on contractors and trades. Get a free policy review before your busy season.