Commercial Auto Insurance Minimum Requirements in Vermont

Determine Whether You Need Commercial Insurance

Commercial insurance is not exclusive to large businesses with large fleets of vehicles. It can also cover smaller businesses like florists, pizzerias, and snowplowing services. To determine if commercial insurance is a perfect marriage for your business, 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're still undecided, you can contact the Department of Motor Vehicles (DMV) or an insurance agent for assistance.

Determine the Required Amount of Coverage

If you opt for commercial insurance, you'll next have to decide on how much coverage to carry. Consider the following factors when deciding on an amount:

• Who owns the vehicle(s)

• Weight of the vehicle(s)

• Usage of the vehicle(s)

• Liability insurance requirements

Keep in mind that depending on your business, you must carry the following minimums:

Passenger Carriers

• $100,000―Per accident for any vehicle with a seating capacity of seven passengers or less.

• $250,000―Per accident for any vehicle with a seating capacity of eight to 12 passengers.

• $300,000―Per accident for any vehicle with a seating capacity of 13 to 20 passengers.

• $350,000―Per accident for any vehicle with a seating capacity of 21 to 30 passengers.

Oversize Vehicle Requiring a Survey Prior to Receiving a Blanket Permit

• $250,000―Injury or death per person

• $500,000―Injury of death per accident

Hazardous Waste

• $1 million―Non-bulk liquids

• $5 million―Bulk liquids

• $1 million―Solids

If you have questions or need more information, call the DMV's insurance office at (802) 828-2050.

Purchase a Commercial Policy

After deciding on your coverage, spend as much time as possible researching different providers. Every company offers different rates and policies, and you'll find some specialize only in commercial coverage whereas others offer both auto and commercial.

Proof of Insurance and Financial Responsibility

You must provide proof of insurance:

• If a law enforcement officer requests it.

• If requesting a Super Load Permit.

• If requesting a blanket permit that's 100 feet or longer.

When asked, you or your drivers must provide one of the following:

• A surety bond certificate.

• The insurance identification card your carrier provides you.

• Proof of self-insurance.

Penalties for Failure to Maintain Financial Responsibility

Operating with no proof of insurance will bring the following repercussions:

• Fines of up to $500.

• Possible jail time of up to one year.

• Suspension of license.

• Possible suspension and cancellation of operating permit.