What is considered a commercial vehicle?
If your business uses a vehicle to transport goods or materials, tools or equipment that is somehow related to your occupation, you have a commercial vehicle and need commercial auto or trucking insurance. Commercial vehicles are classified as passenger cars, trucks, or trailers. For the purpose of commercial auto insurance, a mini-van or SUV is classified as a passenger car. Full-size vans or pickups are considered trucks.
Because truck size can very greatly, they are divided by weight into light, medium, and heavy classifications. As you might expect, commercial truck insurance coverage for a light truck typically costs less than a medium or heavy truck.
Vehicles classified as trailers include flatbed trailers, small utility or service trailers, specialty trailers, and refrigerated trailers. As with truck insurance, trailer insurance premiums typically increase in cost as the weight and size of the trailer increase.
What it covers
Commercial auto insurance with accident benefits coverage and third-party liability coverage are compulsory almost everywhere in Canada. While accident benefit requirements vary by province, in general, it provides compensation for medical and rehabilitation treatment, funeral costs, and income loss due to disability or death. Third-party liability coverage (known as Civil Liability in Quebec) provides coverage to drivers who, while driving your business’ vehicle, are held legally responsible for injuries suffered by someone else or for damages to another person’s property. In a case where a driver was held responsible for more than the insurance covered, your company could be liable for the balance. As with accident benefit coverage, the minimum amount of coverage required varies.
Uninsured Coverage – Commercial auto and trucking insurance policies for uninsured or unidentified motorist coverage is also universal across Canada. Although the actual title may be different, or it may be divided into different types of coverage, but the principles remain the same: this coverage provides payment if the person driving your business’ vehicle is killed or injured by an uninsured, underinsured or, in the case of a hit-and-run, an unidentified driver.
Direct Compensation – Some provinces have optional direct compensation coverage that protect against damage to your vehicle (and property permanently attached inside it) because of an accident where the driver is not at fault or partially not at fault.
Collision – Collision coverage is also optional, and as with a personal vehicle, collision coverage for commercial autos or trucks, it protects against damaged in an accident. As is also true with personal coverage, there is usually a deductible for this.
Comprehensive – Comprehensive coverage is also optional and protects your vehicle from damaged caused by something other than an accident. This can include theft, vandalism, or damage resulting from flying or falling objects. There is usually a deductible.
At Lane’s Insurance, we are business owners just like you. We know every business and industry is unique and needs special protection. We will assess your and identify the best ways to protect your vehicles from the hazards of your business.