What is the required coverage limit for Commercial Automobile Liability Insurance?

The required coverage limit for Commercial Automobile Liability Insurance being set at not less than $1,000,000 each occurrence reflects the significant risk involved in commercial operations that involve vehicles. This coverage amount is intended to protect businesses from substantial financial losses arising from accidents or incidents involving their vehicles. Given the potential for accidents to result in serious injuries or damages, a higher insurance limit is necessary to ensure that adequate financial resources are available to cover claims that may arise. This requirement typically aligns with industry standards and regulatory expectations, helping to ensure that both the business and third parties are adequately protected in the event of an incident.

Lower coverage limits might not provide sufficient protection in many cases where accidents result in substantial claims, hence the necessity for a limit of at least $1,000,000 reflects a commitment to safety and financial responsibility in the commercial sector.