Determine the Required Amount of Coverage

The insurance provider will want to know:

• Who owns the vehicle(s)

• Weight of the vehicle(s)

• Usage of the vehicle(s)

• Liability limits requirements

Have this information ready before you begin investigating how much your insurance will cost.

The minimum amounts of required coverage―or, the combined single limit (CSL)―for commercial vehicles are different for each type of commercial vehicle.

Common Carriers of Household Goods

The minimum amounts required are:

• Non-hazardous property: Vehicles under 10,000 GVWR: $300,000 CSL

• Non-hazardous property: Vehicles over 10,000 GVWR: $750,000 CSL

Common Carriers

The minimum amounts required are:

• Hazardous property: Vehicles over 10,000 GVWR: $1 million CSL

• Hazardous property including explosives, poison gas, compressed gas, radioactive materials (any vehicle weight): $5 million CSL

Passenger Carriers

The minimum amounts required are:

• Vehicles carrying 15 or fewer passengers (includes driver): $1.5 million CSL

• Vehicles carrying 16 or more passengers (includes driver): $5 million CSL

• Non-profit special needs vehicles with 15 or fewer passengers: $500,000 CSL

• Non-profit special needs vehicles with 16 or more passengers: $1 million CSL

Solid Waste Collection

The minimum amounts required are:

• Under 10,000 GVWR: $300,000 CSL

• 10,000 GVWR or more: $750,000 CSL

• Biomedical waste: $1 million CSL

In the end, if you unsure about how much coverage you need to purchase, you can talk with an insurance agent or give the Washington Utilities and Transportation Commission Licensing Services a call at (360) 664-1222.

Purchase a Commercial Policy

Some companies deal exclusively in commercial insurance, and others deal in both private and commercial. Be sure you shop around and get the best rate you can. Get quotes from at least three providers, and make sure the company you choose is licensed in Washington.

Proof of Insurance and Financial Responsibility

After you buy insurance, the insurer will give you a proof of insurance card. Make sure you have this in your vehicle. If you are the employer, make sure the employees always have this with them.

Applying for a Permit or Certificate

Once you have insurance, you may apply for a certificate or permit from the Washington Utilities and Transportation Commission so you can start operating.

The insurance company is required to file Form E, the Uniform Motor Carrier Bodily Injury and Property Damage Liability and Certificate of Insurance. The insurance company should take care of this for you if you purchased commercial insurance, but if they don’t, you should ask them to.

If you have a surety bond, you can file Form G instead.

Penalties for Failure to Maintain Financial Responsibility

If you are stopped and have no proof of insurance with you, you will receive a $500 ticket for driving without proof of insurance.

However, if you are driving without insurance altogether, you could receive:

• Fines and other penalties determined by the courts.

• An audit of your entire business, either by the Federal (for interstate drivers) or State government (for intrastate drivers).