What Happens to Your Commercial Auto Policy if a Driver Gets a DUI?

A driving under the influence (DUI) violation can send ripple effects through your entire commercial auto insurance policy, and many business owners are caught off guard by just how significant those changes can be. If you rely on employees to drive company vehicles in California, understanding your exposure ahead of time is one of the smartest moves you can make.

How Does a DUI Affect Your Commercial Auto Policy?

When an employee receives a DUI, your insurance carrier will likely view that driver as a high-risk individual. Depending on your insurer and policy terms, this can trigger multiple consequences:

• Premium increases—Carriers may raise rates for businesses with DUI-related incidents on their driving record history.
• Driver exclusion—Your insurer may exclude the convicted driver from coverage entirely, meaning any claims involving that person may not be covered.
• Policy nonrenewal—Some carriers in California choose not to renew a policy following a serious violation.
• SR-22 requirements—A DUI conviction can trigger an SR-22 requirement for the affected driver. An SR-22 is a certificate of financial responsibility that confirms the driver carries the state’s minimum required liability coverage. This requirement generally applies to the individual driver for three years from the date of license reinstatement. If the employee intends to continue driving, including vehicles they do not own, they must personally satisfy this requirement.

Coverage details vary by policy, so reviewing your specific terms with your agent is the right starting point.

Steps to Take if an Employee Gets a DUI

Act quickly and deliberately. First, pull that driver from any company vehicle routes until you have a clear picture of your coverage status. Then, notify your insurance agent right away, because delayed disclosure can create additional complications with your carrier. Review your current policy language around driver qualifications and update your internal hiring and driving policies to reduce future risk.

Learn More

Contact Don Ramatici Insurance, A HUB International Company today for personalized guidance on commercial auto insurance. Our team can recommend optimal solutions for your business in Petaluma and Sonoma County, CA.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.