Maryland’s Insurance Requirements for Commercial Vehicles

Maryland’s Insurance Requirements for Commercial Vehicles

When operating commercial vehicles in Maryland, it is essential to understand the state's insurance requirements to ensure compliance and protect your business. Maryland has specific laws regarding insurance coverage that every business owner must adhere to in order to safely operate their vehicles on public roads. This article outlines the key insurance requirements for commercial vehicles in Maryland.

1. Liability Insurance
In Maryland, all commercial vehicles must carry liability insurance. This coverage protects other drivers and their property in case of an accident for which you are found at fault. The state mandates minimum liability limits of:

  • $30,000 for bodily injury per person
  • $60,000 for total bodily injury per accident
  • $15,000 for property damage

However, depending on your business's operations and risk factors, it may be wise to consider higher coverage limits.

2. Uninsured/Underinsured Motorist Coverage
While Maryland does not require uninsured/underinsured motorist coverage for commercial vehicles, it is highly recommended. This insurance protects your business in the event of an accident where another party does not have sufficient insurance coverage. It can save your business significant expenses and liabilities down the road.

3. Cargo Insurance
For businesses that transport goods, cargo insurance is crucial. This coverage protects the cargo being transported against loss or damage due to accidents, theft, or natural disasters. Although not legally required, having cargo insurance can mitigate financial losses in the event of unforeseen incidents.

4. Workers' Compensation Insurance
In Maryland, businesses with employees are required to have workers' compensation insurance. This coverage provides benefits to employees who are injured on the job, including those who drive commercial vehicles. Even if you are self-employed or have only one employee, workers' compensation insurance helps safeguard your business against potential lawsuits related to workplace injuries.

5. Commercial Vehicle Registration
Before operating a commercial vehicle, it must be properly registered with the Maryland Department of Transportation (MDOT). Along with registration, proof of insurance must be submitted. Be sure to keep your registration and insurance documents up to date to avoid fines and legal complications.

6. Specific Industry Requirements
Depending on your industry, there may be additional insurance requirements. For example, trucking companies, delivery services, or utility services may have stricter regulations regarding insurance coverage. Always consult with a knowledgeable insurance agent to ensure you meet all necessary standards for your specific operation.

Conclusion
Understanding and adhering to Maryland's insurance requirements for commercial vehicles is essential for protecting your business and ensuring compliance with state laws. Regularly review your coverage to ensure it is adequate for your operational needs. By taking the necessary precautions and having the right insurance policies in place, your business can thrive while minimizing risks associated with operating commercial vehicles.