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How to insure a commercial vehicle

One common question from small business owners is usually how to insure the vehicle they use on the job. Your work vehicle can get you to and from meetings, to the office, and out for deliveries, making it an important asset that deserves adequate consideration and insurance.

So how does commercial auto insurance differ from personal auto insurance coverage? If the purpose of your vehicle qualifies as ‘commercial’ and you neglect to get it covered as such, you’re setting yourself up for an expensive potential loss should anything unexpected happen.

First let’s take a quick look at what standard personal auto insurance looks like.

Personal auto insurance

Personal auto insurance works to protect people and families when they’re using a vehicle for personal use. Personal use of a car means you can drive it to and from work and also use it for some business-related occasions.

For example, a real estate agent who drives from listing to listing will still be covered under their personal auto insurance. As a mandatory provision, every driver in Canada must have third party liability coverage to cover medical costs and property damage if you’re ever at-fault in an accident.

The amount of third party liability coverage you need will depend on your province, in Ontario, for example, you’ll need coverage amounting to $200,000.

Commercial auto insurance

Commercial auto insurance can be used to protect your business vehicle from a number of perils. You could be a contractor driving between construction sites, a restaurant owner completing deliveries or a small moving business on the daily grind.

Commercial auto insurance can be tailored to fit the needs of your business and each insurance provider will have different offerings, perhaps catering to specific occupations such as insurance for a school bus company.

Important coverage options to consider for your commercial vehicle are listed below.

  • Injury to you, an employed driver or passenger. This includes medical expenses and lost wages.
  • Liability coverage for loading and unloading.
  • Delivery services will benefit from coverage that protects the products of your clients during transportation and delivery.
  • Replacement car coverage should your business car be in the shop for repairs or maintenance. This means you won’t miss out on work, a delivery, shipment or meeting.
  • Additional coverage should you need to travel to outside provinces or states in the company vehicle


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