Commercial Auto Insurance – Detailed Information

Whether you have one commercial vehicle or an entire fleet, you need the right coverage to keep you on the road and in business. Commercial policies can be purchased as a standalone commercial policy or a business auto policy, assuming you’re qualified. If your business requires you to use a commercial vehicle, commercial auto insurance will keep your vehicle financially protected. The needed type of vehicle insurance will be determined by the business use of the vehicle.

Business vehicle(s) – Required if your vehicle is used for business/commercial purposes rather than personal (e.g. contractor or delivery vans, landscaping trucks etc). Premiums are based on the driver, the vehicle’s driving record, claims history, coverage, limits, and deductibles.

Fleet of vehicles – This policy covers ownership or management of a fleet of five or more vehicles for commercial, business, or public purposes.

Garage Operation – If your business has other people’s automobiles in your care and control, garage insurance is for owners of new and used car dealerships, repair garages, body shops, specialty shops, service stations, gas bars, car washes, and parking garages or lots.

One of the main business losses can occur during the transportation of products or through any service. At the risk of your business vehicle being involved in an accident, a victim of vandalism or a collision involving an uninsured motorist, having proper commercial vehicle insurance will ensure a minimum of out-of-pocket expenses.

If you are looking for commercial vehicle insurance, a Broker is the most qualified person to assist you in buying the right policy to cover your vehicle or vehicles.

Mandatory Coverage:

To drive in Ontario, direct compensation – property damage (DCPD) coverage, uninsured automobile coverage, liability – bodily injury coverage, and accident benefits coverage are compulsory. By law.

Liability – Bodily Injury

Protects you if someone else is killed or injured or their property is damaged. It will pay for legitimate claims against you up to the limit of your coverage and will pay for the costs of settling the claims. The minimum required amount of coverage is $200,000 in Ontario though higher limits are recommended.

Accident Benefits

Provides benefits if you are injured or killed in an automobile collision anywhere in Canada and the United States regardless of who caused the collision. These benefits may include:

  • Income replacement.
  • Payments to non-earners who suffer a complete inability to carry on a normal life.
  • Care expenses to persons who cannot continue as a primary caregiver to a member of their household.
  • Medical, rehabilitation and attendant care expenses.
  • Certain other expenses.
  • Funeral expenses.
  • Payments to survivors of a person who is killed.

The details of the accident benefits are set out in the statutory accident benefits schedule of the Insurance Act of Ontario, and are also available on Insurance Bureau of Canada’s website at www.ibc.ca.

Please refer to your policy documents for the standard limits of coverage for each category provided.

Uninsured Automobile

Protects you if you are injured or killed by an uninsured motorist or hit-and-run driver to the extent that you were not at fault. Covers damage to your automobile caused by an identified uninsured motorist. The policy carries a $200,000 limit for injury or death and a limit of up to $25,000 for damage to your vehicle subject to a deductible of $300.

Direct Compensation – Property Damage (DCPD)

This coverage allows you to claim for damage to your vehicle and its contents caused by someone else. DCPD means that, to the extent that you are not at fault in a collision with another vehicle, your own insurer will pay for damage to your vehicle and its contents. Standard $500 deductible (can be increased or decreased).

Optional Coverage:

You are not required by law to purchase collision or comprehensive coverage. However, if you owe money on your vehicle, your lienholder (the person or group you are making payments to if your car loan is not paid in full) may require you to have these types of coverage to protect their interest in your vehicle.

Collision or Upset

This coverage pays for damage to your vehicle to the extent that you are at fault or for damage caused by an unidentified vehicle or object. The standard deductible is $500 for collision or upset and $300 for comprehensive; however, you may choose a higher deductible in order to decrease your rates.

Comprehensive

This coverage pays for all insured damage to your vehicle except for collision damage (e.g., pays for fire, theft and vandalism).

All Perils

This coverage combines collision and comprehensive. It is the broadest coverage available and it includes all types of coverage unless specifically excluded.

Specified Perils

This coverage pays only for losses caused by specific perils listed in the policy (primarily fire and theft).

Increased Liability

Coverage is available beyond the minimum law requirement of $1 million or $2 million. Typically, brokers and insurers will require a $1 million minimum.

Increased Accident Benefits

You may buy coverage beyond the minimum required by law. The optional benefits your Insurance company offers are:

  • Increased income replacement.
  • Caregiver, housekeeping and home maintenance.
  • Increased medical, rehabilitation and attendant care.
  • Increased death and funeral.
  • Dependant care.
  • Indexation of benefits to inflation.

Please refer to your policy documents for optional increased limits or speak to your broker.