Commercial Vehicle Insurance

Certain business usage and vehicle types may be excluded from personal auto insurance policies. Why? Since personal auto policies were not meant for businesses, they are written and rated differently. Commercial vehicle insurance, also called commercial car insurance, or business auto insurance provides physical damage and liability coverage not covered by a personal auto insurance policy. In Canada, any vehicle used to transport clients, materials, goods, tools or equipment, generally requires commercial coverage.

While work vans, cube vans, food trucks, and service utility trucks are most commonly recognized as work vehicles, private passenger vehicles used for business purposes also require a commercial vehicle policy. The general rule of thumb is that if you or your employees use your vehicle as part of your business, excluding your daily commute to and from work which is covered by your personal auto policy, you need a commercial vehicle policy. A few examples include vehicles used by; electricians, plumbers, and HVAC professionals; carpenters, painters, and other contractors; landscapers and plow services; caterers and food vendors; and other business types, like real estate and sales.

At Orr Insurance and Investment we can tailor your commercial vehicle insurance specific to your business needs. Coverage options include:

• Bodily injury liability coverage – covers expenses associated with causing injury or death to someone else in an at-fault accident if a victim or surviving family member files a claim against you in court, this coverage also provides you with legal defence and court costs.
  Property damage liability coverage – provides you with protection if your vehicle accidently damages another person’s property and in most cases covers your defence and court fees if you are sued following an accident.
• Combined single limit (CSL) – Liability policies typically offer separate limits that apply to bodily injury claims for property damage. A combined single limits policy has the same dollar amount of coverage per covered occurrence whether bodily injury or property damage, one person or several.
  Medical payments, no-fault or personal injury coverage – usually pays for the medical expenses of the driver and passengers in your vehicle incurred as a result of a covered accident regardless of fault.
• Uninsured/underinsured motorist coverage – pays for your injuries and, in some circumstances, certain property damage caused by a driver with no insurance or inadequate insurance.
• Comprehensive coverage – pays for damage to your vehicle resulting from theft, vandalism, flood, fire, and other covered perils.
• Collision coverage – pays for damage to your vehicle when it hits or is hit by another person in an accident.

Unattached tools and materials transported in your vehicle are not covered by commercial auto insurance. Tools and equipment are best covered as part of a Business Owner’s Policy or general liability policy.

Depending on the size of your trailer, it may be covered under your commercial vehicle insurance. Generally if your trailer is less than 2,000 pounds gross weight, it is automatically covered for liability but will need to be added to your policy for full coverage in the event of theft or damage. If it is more than 2,000 pounds (usually more than one axle), it won’t be covered unless you add it to your policy.

Commercial fleet insurance is required for commercial businesses that insure groups of at least five vehicles that are under common ownership or management and that are used for business, commercial or public purpose. Commercial fleet insurance policies can offer discounts, or surcharges, based on the overall losses paid over a specified period of time – the fewer claims paid, the greater your premium discounts.

Sometimes it is easy to determine whether or not you need a commercial vehicle insurance policy, however, in some cases the line between a personal auto insurance policy and a commercial insurance vehicle policy may not be so clear cut. Contact us today to determine what coverage options are right for you.