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Who Needs Commercial Auto Insurance?

Whether you’re a small business owner driving between job locations or you’re delivering goods and services to different customers, commercial auto insurance in Ontario is important for protecting yourself and any passengers in your vehicle.

If you’re a business owner and utilize multiple vehicles for different purposes with several drivers, then your personal car insurance policy may not cover you. To get the most affordable car insurance for your business, we’d like to help you understand commercial auto insurance and why you need it.

What is commercial auto insurance?

Commercial auto insurance in Ontario is specifically tailored to cover your business needs while protecting the vehicles you use to operate, or in conjunction with your business. Commercial auto insurance is useful for the following situations:

  • In the event that you, your employees who drive your business vehicles, or passengers get involved in a car accident and get injured, commercial auto insurance can help cover some accident benefits depending on your insurance policy limits.

  • After a car accident, if you need to rent a temporary car to continue running your business, then your commercial auto insurance policy can include the cost of a rental vehicle.

  • If you are at fault for an accident and involved in a lawsuit while engaging in commercial use, your personal auto liability will not come into play. It is important to have a commercially rated policy to protect yourself in the event of a lawsuit.

How is commercial auto insurance helpful?

Think of commercial auto insurance as a security blanket for your business. Since you’re operating a business, you want to make sure that you’re protecting the vehicles you use daily. It’s helpful to have this kind of insurance because in case any of your vehicles get stolen, damaged, or your employees get injured while operating your vehicle while on the job, you can be held liable to pay out of pocket, which could put your business at risk. Your business may also be sued as a result of damage or injury from an automobile accident. Your commercial auto policy would assist in that event.

Commercial auto insurance is also helpful because it can cover all kinds of vehicles such as trucks, pickups, cars, vans, trailers, and fleets used for business purposes. It also covers the drivers who work for your business from injuries caused by other cars, vandalism, and natural disasters.

Who needs commercial auto insurance?

If you’re a business owner or contractor, you might assume that your personal insurance policy covers the vehicles you operate during business hours, however if the vehicle is being used as part of your business operations, it will not be covered under your personal policy. If you’re wondering if you need Commercial auto insurance in Ontario, think about the answers to these questions:

  • Are you the sole owner of the vehicle or multiple vehicles?
  • Is the vehicle you’re using in your business registered under your business name or personal name?
  • Have you hired any employees that drive your vehicle during business hours? If so, you need to give each driver’s name to your insurance company to be added to the policy.
  • Do you own several vehicles operating for your business?
  • How is your vehicle used during business hours? It’s good practice to have commercial auto coverage if your vehicle is operating in the following ways: delivery or transport of goods, merchandise, or materials; your business transports tools or equipment; you or your drivers transport customers to and from places; you transport animals to and from places; and you use your vehicle to perform a service at job sites.
  • What type of vehicles are you using?

What are the different kinds of commercial auto insurance?

We have discussed commercial auto insurance for business use with multiple vehicles and drivers. To clarify further, here’s a breakdown of the different types of commercial auto insurance policies:

  • Business use: This is ideal for small business owners, sole entrepreneurs, and home-based businesses. If you’re the only driver visiting different locations to meet with clients, then you can add this kind of policy to your personal auto insurance for “business use.”
  • Commercial auto: This policy is meant for vehicles that undergo daily use as part of the commercial operations and may also require equipment such as a tool bed in trucks, trailers, and dump trucks.

What’s the difference between personal and commercial auto insurance?

First, personal and commercial auto insurance are similar as they offer financial protection in the event of an accident that gives you a chance to file an insurance claim.

The difference between the two plans is that both have insurance plan limits. Personal auto insurance is intended for individuals commuting to work or using their vehicle for pleasure. Commercial auto is intended for vehicles used primarily for business or commercial operations.

It’s important to discuss with your broker the use of the vehicle. If you are using your vehicle commercially or for business use and it is rated as personal use, your claim could be denied. Give us a call today to discuss your options and see what policy suits your lifestyle best.

Contact James Campbell Insurance Today for Commercial Auto Insurance

For more information about the Commercial auto insurance in Ontario coverage that we offer, give us a call at James Campbell Insurance at 1-833-459-1065 or contact us here. Our team of experts is here to help you with all of your auto insurance needs.