Things You Need to Look For Commercial Auto Insurance in Canada

Things You Need to Look For Commercial Auto Insurance in Canada

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If the vehicles you own or lease serve a commercial purpose, you need commercial insurance. Having the right kind of commercial auto insurance is critical if your business involves commercial trucking. 

Trucks are very expensive, and if one is involved in an accident, the fallout from it could bankrupt the owner. That’s why it’s so important to ensure you know what to look for when you’re shopping for commercial auto insurance.

Important  things to think about when looking for commercial auto insurance:

  • The circumstances that require you to buy  insurance.
  • What your insurance policy will cover.
  • If the insurance company offers a fleet policy.

Situations require commercial auto insurance

You need a commercial auto insurance policy if your employees conduct:

  • Daily trips to visit clients
  • Transport merchandise or materials
  • Make deliveries 

The commercial auto policy should be registered to the name of your business and needs to carry a commercial license plate.

Whether you have one vehicle or a fleet of them, you need insurance if your business transports goods.

What is covered by a commercial auto insurance policy?

These are the most common things covered by commercial auto insurance:

  • Third-party liability. Third-party liability is a key aspect of  insurance. It protects your business and your driver if they are considered to be “at fault” in an accident that damages people or property. The costs from an accident can be incredibly expensive (for example, to pay medical bills or repair damaged property), which is why third-party liability is so important.
  • Collision coverage. This part of commercial auto insurance covers physical damage to a vehicle or its contents.
  • Comprehensive coverage. This part of commercial auto insurance provides protection for incidents such as fire, theft, and vandalism.
  • Uninsured motorists. If an employee is in an accident where the other driver is “at fault” but does not have adequate insurance, this coverage helps cover any costs from the accident.

What is a commercial fleet policy?

Fleet insurance is a type of insurance that will cover four or more vehicles under one policy. This type of insurance is generally used by companies that use many vehicles for commercial or personal purposes. The SME needs to pay only a one time annual premium to cover all their vehicles.

There are two main benefits to having a commercial fleet policy:

  • You may be eligible for a group rate discount on your commercial auto insurance policy.
  • You can easily add and remove vehicles from your policy, rather than having to get a new policy every time you get a new vehicle.

There is generally a minimum number of vehicles required to qualify for a commercial fleet policy, so it’s essential to check what this amount is with your insurance company

How Does Commercial Auto Insurance Work?

We know that based on your business and operations, you need commercial auto coverage.

If your driver hits anything other than another vehicle, your commercial vehicle insurance policy covers the third party damage.

You may be asking: doesn’t liability cover third party damage when you have an accident with another vehicle ? 

With the right insurance policy, you’ll have access to three types of coverage:

Liability coverage: For accidents where your driver is not responsible

Collision coverage: For accidents where your driver is responsible

Comprehensive coverage: For fire/theft/vandalism/glass breakage/falling objects

At AKAN Insurance, we take the time to get to know you and your business. Then we put together a customized commercial auto insurance policy that suits your needs.