Top Determine Whether You Need Commercial Insurance

Commercial insurance is not reserved only for businesses with large fleets of vehicles. It also applies to small family operations, like florists and pizzerias that rely upon delivery service. To help decide if commercial insurance fits your needs, consider the following:

• Will you use a single vehicle or an entire fleet?

• How will your company vehicle(s) be used?

• Who will drive your vehicle(s)?

• Will you transport a heavy load of tools or equipment?

• Will you require use of a trailer?

• Will you need higher limits of liability due to the nature of your business?

If you can't decide if commercial insurance is right for you, call an insurance agent for help. You can also contact the North Dakota Insurance Department at (701) 328-2440.

Top Determine the Required Amount of Coverage

If you choose commercial insurance, you'll then need to decide on how much coverage to carry. To help with your decision, weigh the following:

• Who owns the vehicle(s)

• Weight of the vehicle(s)

• Usage of the vehicle(s)

• Liability insurance requirements

And when deciding coverage amount, keep in mind you must meet the state's minimums. Depending on your cargo (the more hazardous, the higher the rate) you must maintain a minimum $750,000 to $5 million.

For assistance, call the North Dakota Insurance Department at (701) 328-2440.

Top Purchase a Commercial Policy

Once you decide the amount of coverage you need, give yourself plenty of time to research providers and compare quotes for policies. You'll discover some companies offer both auto and commercial policies, and others specialize only in commercial coverage.

Top Proof of Insurance and Financial Responsibility

You and your employees must carry one of the following forms of proof when driving:

• The insurance identification card your insurance company issues.

• A valid self-insurance certificate.

• Proof of a surety bond.

• A cash deposit note or certificate.

Top Penalties for Failure to Maintain Financial Responsibility

If caught with no proof of insurance you'll face the following penalties:

• The immediate suspension of your company's operating permit.

• The possible cancellation of your company's operating permit, if you don't provide proof of coverage within a designated time frame.