Commercial auto insurance in Delaware

Any Delaware company that uses vehicles for business purposes must insure them appropriately. Commercial auto insurance covers vehicles owned by your business, while hired and non-owned auto insurance (HNOA) covers personal, rented, and leased vehicles used by your business.

Your personal auto insurance policy covers you while driving to and from work, but not while making deliveries, picking up supplies, and other work-specific uses. A business auto policy would cover you and your personal vehicle in case you’re at fault for an accident during a work-related errand.

Insurance carriers have exclusions in their personal auto policies that bar coverage for work-related accidents.

Any vehicles you own solely for work purposes must be covered by a commercial auto policy, whether you own a single pickup truck, a food truck, or a fleet of semi-trucks and tractor trailers.

Your business could be in legal and financial jeopardy without commercial auto insurance coverage. In Delaware, all personal and commercial vehicles must at least carry auto liability insurance.

If one of your business vehicles is at fault in an accident, you could face an expensive lawsuit or settlement. You’d likely have to pay for damage to the other vehicle or property, medical bills, lost wages, pain and suffering, plus other related costs.

Additionally, you could face severe penalties for not carrying auto insurance. Driving without insurance in Delaware could result in a fine of at least $1,500, as well as a suspension of license plates and/or vehicle registration for up to six months.

From Wilmington to Dover, state law in Delaware requires all vehicles to have a minimum amount of auto liability insurance coverage, whether they’re for personal or business use, and regardless of your type of business. These liability limits are:

• $25,000 bodily injury liability per person
• $50,000 bodily injury liability per accident
• $10,000 property damage liability per accident
• $15,000 personal injury protection (PIP) for any one person
• $30,000 PIP for all persons injured in any one accident

Your insurance agency might recommend higher policy limits based on the types of vehicles you own and how they’re used.

Semi-trucks, tractor-trailers, and other vehicles with a Delaware Department of Transportation serial number will have additional liability coverage requirements, depending on the type of vehicle and how it’s used.

You can see if your business needs these additional requirements by checking your USDOT number or docket number with the Federal Motor Carrier Safety Administration.

If you’re using your own vehicle for work-specific activities, your personal auto policy wouldn’t cover you in the case of an accident. That’s why many small business owners purchase hired and non-owned auto insurance (HNOA). This liability policy covers accidents in personal, leased, and rented vehicles used for work purposes.

If you or an employee gets into an accident while driving a personal car for a work errand, your HNOA coverage would help pay for any claims or lawsuits against your business. It’s worth noting that this would not cover damage to the vehicle used by your business.

Insureon makes it easy for business owners to get affordable Delaware commercial auto insurance. Complete our easy application to review quotes specific to your business and industry from leading U.S. insurance companies. Our licensed insurance agents can answer your questions about all types of small business insurance and make sure you get the right coverage for your business.