Commercial Auto Insurance
How Much Commercial Auto Coverage Do Contractors Need?
Most contractors should carry at least $1M combined single limit (CSL). Higher limits are needed for heavy trucks, fleets, or when GC contracts require it.
How much commercial auto insurance coverage does a contractor need?
State minimums for commercial auto are often as low as $100,000–$300,000 — far too little for a serious accident involving multiple injured parties or expensive property damage. A $1M CSL policy provides meaningful protection at a reasonable cost.
For heavy equipment haulers, dump trucks, or multi-vehicle fleets, $1M CSL plus a $1–2M umbrella policy is a common and prudent combination. Many GC contracts now require $1M auto plus umbrella coverage from subs.
Review your contracts and consult with your agent to ensure your limits satisfy both your actual risk exposure and any contractual requirements.
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