Commercial Auto and Fleet Insurance
Commercial auto insurance in Ontario is essential for businesses using vehicles, as it covers unique risks that personal policies do not. Whether you’re a landscaper traveling between job sites or a bakery making deliveries, commercial auto insurance ensures adequate protection from potential liabilities on the road.
Do I need commercial auto insurance?
Standard auto insurance is mandatory in Ontario but having a personal auto insurance policy doesn’t mean you have the right coverage. If you use your vehicle in conjunction with your business, you need to have commercial auto insurance.
Who needs commercial auto insurance?
- Contractors transporting materials
- Bakeries, florists and caterers delivering orders.
- Laundromats that transport clients goods.
- Retail owners that depend on their vehicle to transport their inventory.
- You conduct a service with your vehicle.
- Business owners that register their vehicle in the corporation name.
- Courier services.
What do I need to consider to determine if I need commercial auto insurance?
Number of Vehicles
If your business operates five or more cars, trucks, or other vehicles, you may qualify for fleet insurance. By registering all your company vehicles under a single business name, we can help you save on insurance costs through volume discounts.
Use of the Vehicle
This is the most critical factor. Commercial vehicles generally are used for specific purposes like transporting merchandise or tools which is a different exposure that using your vehicle personally. However, if you are making daily trips to visit clients, transporting merchandise, carrying tools or equipment to jobsites or making deliveries, then you should have commercial auto insurance.
Type of vehicle
Commercial vehicles can include any type of vehicle you drive – including pickup trucks, vans or cars (when used for deliveries). Some vehicles, such as heavy trucks cost more to insure or replace and can cause extensive damage in the event of an accident. For these types of vehicles, commercial auto insurance is a necessity.
If in doubt, contact our office and we’d be happy to review your requirements with you.