A long post but here is the insurance's full reply, taking out only our name and state:
"If you would like to use IC’s with their own insured vehicles for your business, we could add a $1M Hired & Non Owned Auto Liability policy for you. This would protect XXX in the event one of the IC’s got into an accident and XXX was named in a suit because the driver was working on your behalf at the time of the accident. Here’s some details on the policy & the requirements:
· Each IC applicant would need to sign an IC Agreement, agreeing to hold XXX Harmless and agreeing to the minimum insurance requirements of the program. A sample Agreement is attached for your use, but you can change this to fit your needs as long as the HH Agreement & Ins req are retained.
· The minimum insurance requirements for the van (light gvw) drivers would be $100,000 per person/$300,000 per accident. You would need to collect a current auto liability insurance declarations page from the driver upon contracting with them. Then, you would need a system in place to have a current dec page on file each year thereafter. They can carry higher limits than those mentioned, but those are the minimum. If you use drivers with larger gvw vehicles, the requirements change, so let me know if you are considering that & I can give you the details.
· You would need to run a current MVR on the IC Applicant to make sure they meet the MVR program eligibility. You could ask the IC to obtain a current MVR from the local DMV, as well. I’ve attached the MVR guidelines for your review.
The policy is rated on a per driver cost. The aprox. cost for a light IC driver in YY is $325.00 annual. The policy would have a minimum premium of $1500 annual (+surplus lines tax & a co. fee). "
So no, it is not an auto policy. I'd still like to hear your thoughts.
Things just do not jive. And I believe the reason they are not is actually the insurance company 90% of the IC and small MCs are using - Progressive. Step away from them and I think you can find reasonable alternatives for the same business model (truth being said, not many).
I don't think I was the first person ever inquiring about this to this insurance company, and them, not being aware of risk, priced it wrong. Rather they actually do what's supposed to be done, linking everything back correctly to the IC's insurance, making sure that is the policy that pays in case something were to happen.