For those Calgary businesses for which mobility is a must, commercial auto insurance protects you, your drivers and your assets. Commercial auto insurance covers those who drive their personal vehicle for work as well as those who own and operate fleets. If you’re already managing commercial vehicles or thinking about launching a venture that will require the use of your personal car or truck, it’s essential that you have the right coverage. Lane’s Insurance’s professional insurance brokers can help you find the perfect commercial auto coverage to keep your business operational and viable.
When Do You Need Commercial Coverage?
Businesses need commercial auto insurance if:
- Company-owned vehicles are used to transport equipment, tools, goods or materials that are part of your business. A delivery truck is the most obvious example of this, however repair and service vehicles also fall into this category, such as a plumbing or landscaping companies.
- You or your employees drive company-owned, registered commercial vehicles as part of your work duties. This means using a company vehicle to head out to off-site meetings, visit job sites and pick up merchandise.
All vehicles that have commercial license plates and/or license tags must be covered under your commercial auto insurance policy.
Supplemental Commercial Auto Insurance for Personal Vehicles
If you’re using your personal vehicle as a primary tool for commercial and/or business activities you may need supplemental commercial auto insurance. Commercial goods, equipment and materials are not covered by standard personal policies, and you need to protect these assets from damage and/or theft. Examples of when you should consider supplemental coverage include:
- Hiring out your vehicle for any reason. This does not include ridesharing, for which there are specific policies available.
- Using your car to make commercial deliveries.
- Transporting equipment to a site for commercial use.
- Using your personal vehicle to carry specialized commercial equipment from one place to another.
What Are the Different Types of Coverage?
Drivers face additional liability issues when driving vehicles for commercial purposes, which are also not part of most personal vehicle insurance policies. Third-party liability and accident benefits coverage are standard policy requirements throughout Canada. However, as with personal auto insurance, keep in mind that the business may be held liable for damages exceeding the policy’s maximum coverage limits. Minimum coverage amounts vary, depending on the nature of the business, the number of vehicles being insured, and who will be driving the vehicles. Ask your Lane’s Insurance broker what the optimal amount of liability coverage you should carry is.
Other types of protection afforded by commercial auto insurance include:
- Uninsured motorist coverage. This type of coverage, which is mandatory in Canada, provides compensation if an uninsured motorist injures or kills the driver of a commercial vehicle.
- Direct compensation coverage. In Alberta, you have the option of adding direct compensation coverage, which offers financial protection in the event that the driver of one of your commercial vehicles is involved in an accident that was not his or her fault.
- Collision and comprehensive coverage. Collision and comprehensive coverage for commercial vehicles is essentially identical to personal auto insurance policies, and also typically include deductibles.
Does Commercial Insurance Cover Personal Use of a Company-Owned Vehicle?
Most policies allow commercial vehicles to be used for personal reasons, however be sure to check with your insurance provider if an employee wishes to do something like take their work vehicle home at night. Many personal insurance policies will cover employee use of a commercial vehicle if they are just driving to or from work, and not using your car or truck for business purposes.
If you use a personal vehicle for part-time commercial activities, it may be possible for the business owner to add you to his or her existing insurance policy.
What Additional Unique Protections Does Commercial Insurance Offer?
With commercial auto insurance, you have many options for upgrading your coverage. You can choose supplementary protections, which offer:
- Vehicle replacement in the event of theft or severe damage.
- Coverage which extends to borrowed vehicles and rented vehicles.
- Full reimbursement, with no depreciation factor, for write-offs on new vehicles.
- Protections that limit or eliminate rate increases, even if drivers are involved in at-fault accidents.
- Extended coverage for garages and vehicle storage bays.
If you have other specialized needs, be sure to discuss them with a qualified insurance professional. You’ve invested a lot in your commercial vehicles; don’t leave them unprotected.
Trust Lane’s for Excellent Rates on Commercial Auto Insurance in Calgary
The world of commercial auto insurance can be complex, but it’s very important not to give in to guesswork and ensure you are properly protected. If you have any questions about Calgary commercial auto insurance, please don’t hesitate to contact a Lane’s Insurance representative for further information.
Lane’s Insurance is a full-service brokerage, offering a comprehensive range of insurance products at highly competitive prices, with extensive customer resources and claims support that’s second to none. Get a fast, free, no-obligation quote by clicking here.
