Commercial Auto Insurance Minimum Requirements in Washington DC
Financial responsibility for commercial or business vehicles is the same as for private vehicles: The owners need to prove that they can pay for any damages caused by their vehicles. In the District of Columbia, owners also need to protect themselves and their employees against uninsured drivers.
Ways to Establish Financial Responsibility
An insurance policy covering your liability and protecting you against uninsured drivers is the only acceptable way to establish financial responsibility.
Determine Whether You Need Commercial Insurance
For some businesses it’s easy to know whether they need commercial insurance. Businesses with employees who drive several vehicles loaded with equipment probably need commercial insurance, but personal insurance policies might be sufficient for small businesses with only one or two vehicles.
Consider the following questions:
- How many and what kind of vehicle(s) do you need to insure?
- How is the vehicle(s) being used?
- Who drives the vehicle(s)?
- Who owns the vehicle(s)?
The answers might help you determine if you need commercial coverage.
For example, if you drive your vehicle regularly to meet with clients, deliver goods, or transport people, you most likely need commercial insurance. If, however, you are in real estate, social work, or home health and do not regularly transport people, your personal insurance may be sufficient. The same applies for home-based businesses like Avon or Tupperware, unless it is your primary employment and your vehicle use is excessive.
Here are some additional situations where commercial insurance would be appropriate:
- Your business equipment cannot be removed from the vehicle(s).
- You or your business picks up and delivers goods and/or people.
- The coverage limits on a personal auto policy are not high enough.
- You need to protect your employees when they use your company vehicle(s) or their own vehicles on company time.
Determine the Required Amount of Coverage
When you are shopping for insurance, you will need to know the following:
- Who owns the vehicle(s)
- Weight of the vehicle(s)
- Usage of the vehicle(s)
- Legal requirements
Purchase a Commercial Policy
Check with your personal insurance company to see whether it offers commercial insurance. Some companies specialize in commercial insurance, so shop around to get the coverage and price you want.Choose a State:
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