To put it plainly, if your business uses any vehicle to conduct business off-site, you need to make sure you have the proper coverage. The size of your business should not deter you from getting the right commercial car insurance in Ontario.
You may be a florist serving the community and using your car to deliver arrangements to customers. Or, your business could be a large production company with an enormous fleet of trucks toting thousands of products all over the country. Either way, commercial car insurance protects your assets and your business if anything should go wrong on the road.
There are many types of vehicles that fall under commercial auto insurance in Ontario. The list includes, but is not limited to:
- Box trucks
- Food trucks
- Pickup trucks
- Delivery trucks
- Passenger vehicles
- Sport utility vehicles
- Service utility vehicles
You can add standard vehicles to a commercial car insurance policy as well. However, the vehicle must be titled and used for business reasons to qualify for coverage.
Having the proper commercial car insurance will protect you, your employees, and your business from a number of exposures. A comprehensive auto insurance policy will provide coverage for damage to vehicles, other property, bodily injury, and legal liabilities. Additional coverages are available that can enhance coverage further for various specific needs.
There are many factors to consider when shopping for business car insurance in Ontario. Policies can be customized to fit the specific needs of your company. You might be wondering what your cost will be for obtaining a commercial auto insurance policy, though that answer is not a straightforward one, you can find out rather quickly by answering just a few questions.
When developing a premium for a commercial automobile policy, there are a number of factors taken into consideration including:
- Driving radius
- Age of drivers
- How vehicles are used
- Marital status of drivers
- Make and model of each vehicle
- Driving history of the employees
- Attached equipment to any vehicles
- Where vehicles are stored overnight
- Your company’s previous loss history
Your premium may be as low as $600 a vehicle to over $10,000 a vehicle, per year. Keep in mind. However, most private passenger or light commercial units see and an average cost of $1,000 to $1,500 per year for relatively strong coverage.
The characteristics of your drivers and fleet of vehicles are only part of the equation. The next step in developing your total annual premium includes selecting the types of coverages you wish to include and at what limits.
Bodily Injury Liability Insurance – Part of your policy that will cover medical costs for an individual injured in an accident caused by you or one of your employees due to negligence. This portion of your plan will also include any legal fees that may arise.
Property Damage Liability Coverage – A portion similar to the bodily injury coverage covering the cost of repairs or replacement of another person’s property if you or one of your employees causes an accident. This includes damage to another person’s vehicle or personal property.
Accident Benefits/Medical Costs – Coverage of medical fees for passengers in your business vehicle who were involved in a collision.
Collision Insurance – This optional addition to your policy will cover damages to your business vehicles caused by an accident in which one of your drivers was at fault.
Comprehensive Coverage – Coverage protecting you and your business in the event your vehicle is stolen, suffers damage, or vandalized by something other than an accident with another car. This includes collisions involving wildlife such as deer, elk, and moose.
Uninsured/Underinsured Motorist Insurance – Though it is illegal to drive in Canada without any insurance on a vehicle, many drivers still choose to disobey the law, or they do not have adequate coverage. Because of this, you can add this coverage to your plan, so if one of these drivers were to cause a crash between themselves and one of your business vehicles, you would be safe from having to pay out of pocket to fix any damages or take care of any medical fees.
It is important to note other items may need to be scheduled onto your commercial auto insurance policy. Often overlooked is scheduling trailers that have their own liability exposures and could become stolen or damaged. Also, consider any mobile equipment your vehicles may have on board. Coverage for items such as cell phones, laptops, and tools are often excluded unless specifically covered on your policy.
Lastly, although each province sets their own minimum auto liability insurance requirements, Ontario follows most other provinces requiring drivers to carry a minimum of $200,000 in third-party liability insurance. In addition, Ontario drivers must also purchase direct compensation property damage (DCPD). This covers your automobile damages if the other driver is at fault for a collision.
Duliban home insurance brokers in Ontario have been providing coverage for business owners since 1976. We aim to please every customer that we serve. By partnering with the strongest insurance companies serving Ontario, our clients receive the coverage they need at the most competitive rates. But don’t take our word for it, we’ve earned the trust of hundreds of business owners in Southern Ontario.
“Jason and his team provided exceptional service and professionalism from start to finish. I am more than happy with the services provided and the quality and price of the insurance plans offered. We have fully switched all our insurance needs over to Duliban Insurance. Thanks for making insurance understandable and taking the time to answer all our questions! 5 Stars!” – Caitlin S