Commercial auto insurance is a requirement if you’re using a vehicle for business-related purposes. Often, the coverage limits for a commercial policy have much higher limits than your personal policy because there’s increased risk for covering commercial vehicles. Unlike a personal policy, which is often separated into categories like personal injury and property damage, a commercial auto insurance policy typically has a combined single limit. The minimum requirements for your policy can vary depending on your business, and if you want specific information, contact Connect America Insurance Agency, which serves Jacksonville, FL.
As most commercial auto insurance policies have a combined single limit, it’s common to see policies ranging from a half-million to multiple millions of dollars. Some smaller companies may be able to get a policy that starts at $100,000, but most businesses will find themselves needing more coverage.
There are some benefits to having your commercial policy under one limit. For example, if you’re responsible for an accident that causes a great deal of property damage and little or no bodily injuries, you can use the entire limit of your policy to pay for the property damages.
Minimum Coverage for Taxi Drivers
According to the Florida Department of Highway Safety and Motor Vehicles, self-employed taxi drivers who have a taxicab as their only vehicle must have bodily injury liability coverage of at least $125,000 for each person, $250,000 per occurrence, and $50,000 for property damage liability coverage.
Other Useful Information
When you’re getting insurance quotes, you may notice that many companies will only permit you to get limits that are higher than the state or federally-mandated limits. While this may seem confusing, it’s because the minimum requirements are often not enough to cover commercial liability. For information that’s tailored to your business, reach out to Connect America Insurance Agency, which serves Jacksonville, FL, today.