Your Commercial Auto
Insurance Policy in Ontario

Everything you need to know about your commercial auto coverage and what to do when you need it.

Commercial auto insurance covers trucks, vans, SUVs, and other vehicles used in Ontario to drive to job sites, haul equipment, or transport tools and materials.

Most personal auto policies explicitly exclude coverage for any vehicle used for commercial purposes. If you only have personal insurance, you could be left paying out of pocket after an accident.

• Third-Party Liability (Mandatory)
  Covers you if you cause an accident that injures or kills someone, or damages their property. Ontario law requires a minimum of $200,000 in coverage, but most business owners carry at least $1 million, as legal and settlement costs can quickly exceed the minimum.
• Accident Benefits (Mandatory – partial; see note below)
  Covers your medical and rehabilitation expenses, and lost income after an accident, regardless of who is at fault. Accident benefits include:
• Income replacement: Up to 70% of gross income up to $400/week if injuries keep you off work
• Medical rehabilitation and attendant care: Treatment costs beyond what OHIP covers (mandatory)
• Non-earner benefits: $185/week if you don’t qualify for income replacement
• Caregiver benefits: Financial support if a serious injury prevents you from caring for a child or dependent
• Death and funeral benefits: Financial support for your spouse, dependents, and funeral costs
• Miscellaneous benefits: Covers damaged clothing, prescription eyewear, medical devices, housekeeping, and lost educational expenses

Direct Compensation-Property Damage (DCPD) (Mandatory with opt-out option)
If another driver causes an accident, DCPD lets you file your claim directly with your own insurer rather than dealing with the at-fault driver’s insurance company. It’s faster and simpler. To qualify, the accident must occur in Ontario, all vehicles must be insured and identified, and you must not be at fault. Claiming on DCPD typically does not affect your future premium.

Uninsured Auto (Mandatory)
Protects you if you’re hit by an uninsured driver or a hit-and-run. Covers damage to your vehicle and injuries to you and your passengers. Ontario law requires a minimum of $200,000 in coverage. 

Optional Coverages

Beyond the mandatory coverages, you can customize your policy with these optional protections: 

• Collision or Upset Insurance: Pays for damage to your vehicle from a collision with another vehicle or object, or if your vehicle rolls over. Note: if you’re at fault, making a collision claim may affect your future premium. 
• Comprehensive Insurance: Pays for damage to your vehicle from non-collision events, including theft, vandalism, fire, natural disasters, falling objects, or hitting an animal. Comprehensive claims typically do not affect your premium the way at-fault collision claims do. 

An endorsement is an add-on that modifies your existing commercial auto policy for expanding, restricting, or adjusting your coverage beyond the standard terms.

The most common endorsements for commercial vehicle policies in Ontario:

• Loss of use: Covers rental vehicle costs while your vehicle is being repaired or replaced after a covered claim. 
• Liability for damage to non-owned automobiles: Covers non-owned vehicles in your care, custody, or control.
• Waiver of depreciation: Removes the insurer’s ability to deduct vehicle depreciation on a total loss claim, for a set number of years.
• Family protection: Tops up your third-party liability limits to cover the gap if you’re hit by an underinsured or uninsured driver.
• Accident waiver (accident forgiveness): Prevents a rate increase after your first at-fault accident, if you have a clean driving record and meet your insurer’s eligibility requirements.
• Minor conviction protection: Prevents a rate increase after your first minor conviction, if you have a clean record. Does not apply to major violations (impaired driving, excessive speeding, distracted driving).
• Permission to lease: Ensures both the vehicle owner and the person leasing it are protected under the policy during the lease period.
• Lienholder protection: Protects the financial interest of the lender that provided your vehicle loan.

Ontario’s Statutory Accident Benefits Schedule (SABS) sets the minimum accident benefit coverages that all auto insurance policies in the province must include.

Currently, five coverages are mandatory under SABS:

1. Income replacement
2. Medical rehabilitation and attendant care
3. Non-earner benefits
4. Caregiver benefits
5. Death and funeral benefits

These coverages can be increased and others added to your policy, such as:

• Income replacement can be increased from $400/week to $600, $800, or $1,000/week
• Housekeeping and home maintenance
• Damage to personal items
• Lost educational expenses
• Visitor expenses 

If your vehicle is used for any of the following, you need commercial auto insurance in Ontario. Personal auto coverage won’t apply: 

• Transports tools, equipment, materials, or goods to job sites or customers
• Is a heavy vehicle (4,500 kg or more, or requires a CVOR certificate)
• Is branded with your company name or logo
• Is leased for commercial use

Common professions that require a commercial auto policy in Ontario:

• General contractors, construction workers, and skilled tradespeople
• Electricians, plumbers, HVAC technicians
• Landscapers and snow removal contractors
• Businesses with fleet vehicles (5+ vehicles may qualify for a fleet insurance policy at a lower per-unit cost)
• Operators of specialized commercial vehicles (cement mixers, crane trucks, riggers, garbage trucks, and similar heavy equipment) 

A deductible is the amount you pay out of pocket before your insurance coverage kicks in on a claim.

Deductibles are a form of cost-sharing between you and your insurer. They vary by coverage type and are spelled out in your policy document. For example, you might have a $1,000 deductible for comprehensive coverage and a separate $1,000 deductible for collision.

Knowing your deductibles before you file a claim helps you avoid surprises — and helps you decide whether a small claim is worth filing at all.

Higher deductibles generally mean lower premiums. Lower deductibles mean less out-of-pocket cost at claim time, but higher premiums.

If you want to adjust your deductibles, contact your Zensurance broker.

You can generally cancel your commercial auto policy at any time during the one-year term, but there may be a cost.

Some insurers apply a short-rate cancellation penalty if you cancel before the end of your policy term. That means you may receive less of a refund than you’d expect based on the remaining coverage period.

If you’re considering cancelling mid-term, speak to your Zensurance broker first to understand your options, any potential penalties, and whether adjusting your coverage might be a better fit than cancelling entirely.

If you’re involved in an accident or your vehicle is damaged, here’s how to submit a claim with Zensurance:

Call us toll-free at 1-888-654-6030 or email us: [email protected] 

Our Claims team is available 24/7.

Before you call or email, have the following ready:

1. Your business name or the legal name of the policyholder
2. Your commercial auto insurance policy number and the name of your insurer
3. A description of the accident or incident (date, time, location, and what happened)
4. A copy of the police report, if one was filed
5. Photos or videos of the vehicle damage and the accident scene, if available

The more detail you can provide upfront, the faster your claim can be processed.

Your business changes. Your coverage should keep up.

Keeping your broker informed about changes to your business – new vehicles, employees, services – ensures your commercial auto insurance still covers what it needs to.

Reach us any time:

📧 Email: [email protected] 

📞 Toll-free: 1-888-654-6030

💬 Live chat: Available on our Contact page