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Commercial auto insurance is a tricky thing to get right. If you are not careful, you could end up with an expensive policy that does not cover important things for your business needs. The following blog post will help you learn about five key points to consider when looking at these policies so that you can find one that meets your needs and budget!

Understanding Commercial Auto Insurance

You can find the right commercial auto insurance policy for your business needs by following these tips!
  • ♦ The first thing to consider when looking for it is the type of business you are in. Different policies are available for various businesses, so it is important to know what your business entails.
  • ♦ You should also consider the jurisdiction you live. The laws regarding commercial auto insurance vary, so it is important to know what is required in your area.
  • ♦ It can be expensive, so you need to find a policy that fits your budget. However, it is important not to skimp on coverage to save money.
  • ♦ You should also make sure that you are familiar with the terms of your policy, such as the deductible and the coverage limits.
  • ♦ Finally, you should always read the fine print. Those such policies can be full of exclusions and limitations, so it is important to know what you are getting.
By following these tips, you can find the right policy for your business needs! Feel free to ask our brokers any questions you may have.
Type of business

Different policies are available for various businesses, so it is important to know what your business entails. For example, if you are a delivery driver, you will need a policy that covers delivering goods. If you are an Uber driver, you will need a policy covering your vehicle for business use purposes.

Size of your business and delivery

If your company is small with no delivery, you may be able to get away with a basic policy. However, if your company is large or has multiple drivers, you need a more comprehensive approach. These policies could include coverage for things like medical expenses and property damage. 

Jurisdiction

Considered the jurisdiction you live in. The laws regarding commercial auto insurance vary, so it is important to know what is required in your area.

Budget
Commercial auto insurance can be expensive, so you need to know that fits your budget. However, it is important not to skimp on coverage to save money. Instead, try to find a policy with the right coverage level for your needs. Should the insurance cost outrun the budget, it makes more sense to hire delivery than do it yourself. Make sure you have "non-own auto" on your business insurance package to cover yourself.
Familiar with the terms 
You should also make sure that you are familiar with the terms of your policy. Do understanding specific terms such as deductible and the coverage limits. It is important to know what each term means to make informed decisions about your policy.
Read the fine print
Commercial auto insurance policies can be full of exclusions and limitations, so it is important to know what you are getting. If you are not sure about something, be sure to ask your risk specialist like UW Insure for clarification.

 

Why and Who Needs Commercial Auto Insurance?

Not all car insurance's the same. It is essential to compare both personal and commercial and know what is required to have proper coverage. We have this comparison of commercial auto vs personal auto in detail to help understand each and its features.

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What's Unique About Commercial Auto Insurance?

Commercial Auto Insurance, along with business liability and business property, forms part of business insurance, but there is more to it. Some business owners believe all car insurance policies are the same, or never knew commercial auto insurance existed. They think insurance should cover all cars regardless of what it is used for until it is too late.

If a business requires an operating vehicle, you need commercial auto insurance. Moreover, all companies should review their business insurance to ensure it covers as intended to avoid the coverage gap.

Consider the following scenario: if you are delivering food to your customers to fulfill online order, a contractor visiting job sites taking their expensive equipment to the worker, picking up clients from the airport on the way to show the newly listed house for sales, commercial auto insurance is needed for all above to protect the business to risk and potential financial loss. Vehicles are critical to getting a job done in business. Therefore, getting the proper business car insurance is essential for business.

What are the risks compared to personal car insurance?

Accidents happen. Should an injury occur to any driver or passenger, your business may get a substantial bill as a result. These can be in the form of medical bills or lost wages that probably be declined by the company when involving a claim. Typical accidents such as loading and unloading from the vehicle when your business is transporting merchant goods or products to customers material for exhibition events. 

Comparing Commercial Auto Insurance vs Personal, Commercial auto is intended to protect a company on liability and physical damage for cars, trucks, and vans used to generate income. It requires a separate policy from personal vehicles because they are typically exposed to more risk.

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 vehicle insurance policy.
What are the features of a commercial auto policy?

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

However, personal vehicle policy will decline payment in the event of an accident should the vehicle be 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 vehicle 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 taxis, buses, or even ambulances) will be considered illegal without valid commercial insurance. Even the car has been on incidental use for personal errant.

How does Garage Auto Insurance work?

Any businesses involved in handling vehicles that are not owned by the company will need a garage liability policy. This protects the company while operating vehicles owned by its 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 who got into an accident will have coverage under the 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 it. This will be a commercial vehicle policy. 

Must I fully disclose everything related to my business when buying auto insurance?

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, it allows business and personal use of vehicles, while the private insurance policy is strictly for personal use only.

How much commercial auto insurance coverage do I need? 

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.

A business owner needs to consider the level of coverage they need for commercial vehicles. Third-party liability is mandatory, but other 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.

Commercial General Liability

Professional Liability

Commercial Property

Drone Insurance

Cyber Insurance

How does Fleet Insurance work?

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



You Must Have Commercial Insurance If

  • 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:
  1. Transport customers or deliver merchandise, goods or materials
  2. Use for driver training
  3. Transport equipment or tools
  4. A big and heavy vehicle that is 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 are available across Canada to provide health care for you or your employees. 

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

 

 

 Optional Add On


For Both Personal and Commercial Auto Insurance

Coverage Description
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.
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 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. 
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.

For Commercial Auto Insurance Only

Coverage Description
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.