Commercial auto insurance in Minnesota

Any Minnesota company that uses vehicles for business purposes must have commercial vehicle insurance, whether it’s the owner’s personal vehicle or a fleet of vehicles owned by the 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.

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 personal auto policy would cover you while driving to and from work, but not while making deliveries, picking up supplies, and other work-specific tasks. 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.

Your business could be in legal and financial jeopardy without commercial auto insurance coverage. In Minnesota, any business that has its own 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 costs, lost wages, pain and suffering, and other related costs.

Additionally, you could face severe penalties for not carrying auto insurance. Driving without insurance in Minnesota could result in a fine of at least $200, as well as a suspension of license and registration for up to 30 days, and potentially community service.

All vehicles in Minnesota, from Minneapolis to St. Paul to Duluth, are required by state law to have a minimum amount of auto liability insurance coverage, whether they’re for personal or business use.

These liability limits are:

• $30,000 bodily injury liability per person
• $60,000 bodily injury liability per accident
• $10,000 property damage liability
• $25,000 uninsured/underinsured motorist coverage per person
• $50,000 uninsured/underinsured motorist coverage per accident
• $40,000 personal injury protection

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

Personal injury protection (PIP) insurance is a mandatory add-on coverage to help provide medical payments coverage after a car accident, regardless of who was at fault.

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

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

Insureon makes it easy for business owners to get affordable Minnesota commercial auto insurance. Complete one easy application to review quotes specific to your business and industry from leading U.S. insurance companies.

Our licensed insurance agents will answer any questions and make sure you get the right business insurance for your needs, including other important policies such as general liability, professional liability, and workers' compensation insurance.