If you rely on vehicles for your business, it’s important to make sure you have the right auto insurance coverage. This guide will help you understand the different types of coverage available so you can choose the best options for your small business.
Understand Required Coverages
When choosing commercial auto insurance coverage, it’s essential to understand the coverages you are electing under your policy.
In Maryland, coverage requirements vary depending on the nature of your business use. Most businesses are required to carry the minimum limits of liability and uninsured motorist coverage, and some, but not all, are required to carry personal injury protection (PIP).
Consult a Maryland Auto authorized provider to determine the minimum requirements for your vehicle’s business use. Depending on your needs, you may wish to consider coverage beyond the minimum limits to protect you and your company. Additionally, some contracts may require specific coverage, such as $1M limits, to participate in bidding processes.
Maryland Auto offers split limit coverage from the required minimums up to $100K/$300K/$100K. We also provide combined single-limit coverage of up to $1M for certain types of business uses. You can learn more about this option by speaking with an authorized Maryland Auto provider.
Consider Additional Coverages
Comprehensive and Collision: These coverages pay for damages to covered business vehicles. These “physical damage” coverages aren’t available for all commercial auto use types. Vehicles that don’t qualify for this coverage include antique vehicles, motorcycles, mopeds, motor scooters, low-speed vehicles, short-term rental vehicles, and recreational vehicles.
Factors That Can Affect Premiums
Drivers
For those who rely on their vehicle for work, it’s important to follow safe driving practices. Unsafe behaviors may result in the loss of insurance coverage, impacting your ability to drive and work.
Consider implementing driver training programs to reduce risks and potentially save on premiums. The National Traffic Safety Institute provides a very helpful library of training courses. Depending on your insurer, you may be eligible for a discount on your insurance premium when your employees complete driver safety programs.
Maryland Auto offers a collection of resources for commercial auto policyholders, to help implement safe driving practices to help keep everyone on the road safe.
The more drivers operating your vehicles, the higher your insurance premiums may be. In addition, some operators may not be able to secure coverage under your business’s commercial auto insurance policy. Occasionally, these businesses will obtain coverage for that driver through Maryland Auto Insurance or another non-standard carrier.
Vehicles and Business Type
The vehicle type and weight, and the nature of the business can affect your premium A business transporting luxury goods long distances may pay more than one transporting produce over short distances.
Review Your Policy Regularly
As your business grows or changes, your insurance needs may also change. Review your policy with your agent annually to ensure it aligns with your current business needs.
If you need an agent, you can find a local Maryland Auto provider here.
