Maryland’s Requirements for Liability Insurance in Commercial Vehicles

In Maryland, liability insurance is a crucial requirement for operating commercial vehicles. This insurance protects against financial losses resulting from accidents or injuries caused by the insured vehicle. Understanding the specific requirements can help business owners stay compliant and safeguard their assets.

Maryland law mandates that all commercial vehicles must carry liability insurance. The minimum liability coverage limits in Maryland are:

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

These minimum limits are designed to ensure that if an accident occurs, the insurance will cover some of the costs associated with bodily injury or property damage to third parties. However, businesses may choose to purchase higher limits to enhance their protection.

It is important to note that Maryland has specific definitions for what constitutes a commercial vehicle. Vehicles used for business purposes, including trucks, vans, or vehicles designed to transport more than 15 passengers, fall under this category. Depending on the type of commercial activity, additional insurance requirements might be necessary.

For businesses operating large trucks or vehicles transporting hazardous materials, Maryland requires additional coverage. This can include:

• Combined Single Limit (CSL): Many businesses opt for a CSL policy to simplify coverage. For example, a policy with a $1 million CSL provides a single limit for both bodily injury and property damage claims.
• Higher Bodily Injury Limits: Depending on the business risk, companies may need to consider higher limits to align with the potential liabilities associated with their operations.

Insurance providers often offer specialized commercial vehicle insurance policies tailored to different industries. Therefore, consulting with an insurance agent who understands the specific risks of your business can help you find the right coverage. This is especially relevant for businesses involved in transportation, delivery, or logistics, where the risk of accidents and claims may be higher.

Finally, Maryland requires businesses to provide proof of insurance when registering their commercial vehicles. This proof can come in the form of an insurance card, policy documentation, or a notice from the insurance company. Maintaining up-to-date insurance documentation is vital to avoid penalties and ensure smooth business operations.

In conclusion, understanding Maryland’s liability insurance requirements for commercial vehicles is essential for businesses to operate legally and responsibly. By securing the appropriate coverage, business owners can protect themselves against potential liabilities and ensure the longevity of their operations.