As a business owner, you should consider the following to determine if commercial auto insurance is needed.

• Should employees use their vehicle for business purposes; Always ensure they are listed as drivers on the commercial auto insurance policy.

• Contractor driving between job sites, with expensive tools and equipment in the truck needing protection from theft

• A vehicle owned by a business.

• If you make customer deliveries frequently, involving lifting, loading, and unloading of goods

• Using a vehicle for any of these:

  • Transport customers or deliver merchandise, goods or materials 
  • Use for driver training 
  • Transport equipment or tools
  • A big and heavy vehicle that commonly used only in commercial

Protect your business with our proper commercial auto insurance solution based on any unique needs. Get the basic business vehicle coverage with the right amount of liability coverage if anyone with access to the company car accidentally hurt someone or damage their property. Accident benefit packages available for cross Canada to provide health care for you or your employees. 

So, in short, the commercial auto insurance can be seen as an extension to coverage on private auto insurance when it is decline for the above use.

 Comparing Commercial Auto Insurance vs Personal

When looking into an auto insurance policy wording, commercial auto insurance is similar. It provides liability coverage, so any damage caused to other vehicles or property will have the same legal responsibility. Anyone injured in the car accident involving the insured car will be covered by their insurance company.

However, personal auto insurance will decline payment in the event of an accident should the vehicle is found being used for business. Anyone involved in a car accident while working, visiting clients, and delivering merchants or real estate persons making a business visit will decline under personal insurance. When comparing commercial auto insurance vs personal, the personal car insurance policy states that it cannot be commercially used.  

Driving as a construction worker carrying tools to sites, delivering merchandise, taking passengers (such as public taxi, bus, or even ambulance) will be considered illegal without valid commercial insurance. Even the car has been on incidental use for personal errant.

Fleet commercial auto insurance vs personal

Businesses with multiple cars or trucks could get a fleet insurance policy. It will have some cost savings combining all vehicles under a single insurance policy. This is known as a fleet insurance policy, provides the same insurance coverage but often with discounted premiums.

Comparing Garage commercial auto insurance vs personal

Any businesses involved in handling vehicles that are not owned by the company will need a garage auto liability policy. This protects the company while operating vehicles owned by their customers.

A garage insurance policy is intended to protect the business by covering anyone if they are injured, damaging the company vehicle and others' property, including others' vehicles. Any staff running the business with the client's vehicle got into an accident will have coverage under the garage insurance policy.

Vehicle dealerships, automobile body shops, service stations, repair garages, tow truck operations, and parking lot owners need such garage auto insurance policy.

However, businesses involving leasing vehicles to others will not be covered under a garage insurance policy. This will be a commercial auto policy. 

Optional Coverage For Commercial Auto Insurance vs Personal

The following optional coverage are available on both personal and commercial auto insurance.

• Own Damage 

This option covers damage to your own vehicle, depending on the option including all Perils, Collision, Comprehensive and Specified Perils

• Family and friends Protection 

This option is added to most car insurance policies. They cover when responsible drivers carry insufficient liability limits to family and friends injured in the vehicle during an accident.

• Loss of Use

This option allows a replacement vehicle due to an insured loss. There is a cap to a replacement vehicle.

• Legal Liability for Damage to Non-owned Vehicles

This provides coverage on legal responsibility for damage to an operating vehicle not belonging to the insured driver (such as a rental company's car). There is a maximum value to a vehicle it covers.

• Limited Waiver of Depreciation or Replacement Cost

Insurance will pay a depreciated value to the vehicle's damage if the accident results in a total loss. This option allows the insured to get the actual purchase price or the cost to replace depending on the selection. There may be a period this option is allowed to add to the insurance policy. Some restrictions are applied.

• Limited Glass Endorsement

This "reverse coverage" reduces the comprehensive coverage by limiting vehicle glass, and it will lower the insurance rate.

• Accident Rating Waiver

This option protects a good driving record from being downgraded due to a first "at-fault" loss. The insurance premium would not increase due to an accident. Some restrictions are applied.

• Auto Network support

Some of our partners have the option for free tow or emergency roadside support added to the policy. 

The following are options only to commercial auto insurance

• Industry-based fleet insurance coverage

Multiple vehicle discount programs cater to various industries, including trucking, manufacturing, energy, realty, construction, etc.

• Garage policy

If business involving services or repairs other people's vehicles, you have liability exposure and need to have this.

• Commercial Use Endorsement

As personal insurance for cars forbids using a vehicle for a purpose other than personal, there is an add-on to make it exception under commercial car insurance. Some include permission to carry passengers, use as a driving school, carrying radioactive, toxic or explosive in the vehicle.

• Cargo 

Some commercial auto insurance allows additional cargo coverage, such as passengers' goods or luggage up to a certain amount. For some trucks with a container, MTC or Motor Truck Cargo can request protection of customers' interest in care.

• Customs and excise bonds

Suppose a business involves in car parts for importing, exporting, manufacturing, sales, or distributing goods in Canada. In that case, we can arrange for customs or excise bond.  

• Complex Risks for vehicle insurance

Transportation of goods between the U.S. and Canada needs a detailed description due to its complex nature.

Is Commercial Auto Insurance necessary if I do not disclose?

Insurance is about "utmost good faith." As insured, you declared all risks to the insurer, including should you use a vehicle to generate income. Commercial auto insurance acts as an extension for standard personal insurance, which forbids vehicles' use except for personal use. 

A business will also need to have a commercial auto insurance policy if the employees operate their own vehicles. A typical company such as courier will need to have commercial auto insurance under these circumstances. In short, commercial auto insurance allows business and personal use of vehicles, while the private insurance policy is strictly for personal use only.

Selecting commercial vehicle insurance coverage that meets your specific needs is vital to protecting your business and income. 

Contact us to see how we can customize the insurance to best match your business requirements.

Our commercial insurance brokers will find insurance that fits your business.

A business owner needs to consider the level of coverage they need for commercial vehicles. Third-party liability is mandatory, but other insurance coverage includes repairing or replacing damaged, or stolen vehicles, renting replacement vehicles can be added. However, we need to declare to the insurer the nature of business use and determine the right insurance available.