Commercial Auto Insurance

Personal car insurance policies aren’t designed for commercial vehicles and don’t provide the specialized coverage your business needs to stay protected on the road. For example, if you’re using your vehicle to make deliveries, transport tools or equipment, shuttle clients or employees, or visit job sites, a personal policy may not cover accidents or damage that happen during these activities.

Commercial auto insurance ensures you’re covered for these scenarios no matter what happens on the road.

• Third-Party Liability: Covers bodily injury or property damage that you cause to others in an accident.

• Accident Benefits: Offer benefits for income replacement, non-earner, caregiver support, housekeeping, home maintenance, medical rehabilitation services, attendant care, catastrophic impairment, death and funeral expenses. Options do exist to increase these coverages.

• Direct Compensation – Property Damage (DCPD): DCPD covers damage to your vehicle and property inside it when another driver is at fault for a collision. Claiming on this coverage typically does not impact your future premium.

• Uninsured Automobile: Protects you if you are involved in an accident with an uninsured or hit-and-run driver. It covers damage to your vehicle and injuries to you and your passengers.

The coverages above come with different coverage limits and deductibles and could have an extended definition. It is important to understand your needs as you decide what the right coverage limits and deductibles are for you.. Many people will get as much insurance as they can afford so that they have the protection they need in the event of an accident.

Optional Coverages:

• Collision or Upset Insurance: This optional coverage pays for damage to your vehicle from a collision with another vehicle, object, or if your vehicle rolls over. It might impact your future premium if you are at fault for a collision.

• Comprehensive Insurance: This optional coverage pays for damage to your vehicle from non-collision events, including theft, vandalism, fire, natural disasters, falling objects, or collisions with wildlife if an animal darts out in front of you unexpectedly while driving..

A commercial auto insurance endorsement (or rider) is a customized modification to an existing policy that adjusts coverage terms, either by adding, removing, or altering protections. Among the most common endorsements business vehicle owners add to their policies are:

• Loss of use: If your vehicle was involved in a collision and is being repaired or replaced, this coverage provides funds to rent a similar vehicle while your car is being repaired or replaced.

• Liability for damage to non-owned automobiles: Provides coverage for non-owned vehicles in your care, custody, or control.

• Waiver of depreciation: When new vehicles are driven off the lot, they depreciate substantially. This endorsement removes the insurer’s ability to deduct depreciation of the vehicle after a total loss claim for a specific number of years. Speak to your Zensurance broker to see if your vehicle would qualify for this coverage.

• Family protection: Provides coverage if an underinsured or uninsured motorist collides with your vehicle. This coverage will increase third-party liability limits to cover the difference between the insured and the underinsured or uninsured motorist.

• Accident waiver (accident forgiveness): If you have a clean driving record and have been insured for a sufficient duration, which varies by insurer, you can purchase this coverage to prevent a rate increase after your first at-fault accident. However, it only applies to your current insurer and won’t transfer if you switch companies.

• Minor conviction protection: If you have a clean driving record, you can purchase this coverage to prevent a rate increase after your first minor conviction. However, it only applies to your current insurer and won’t transfer if you switch companies. Keep in mind that it does not cover major violations, such as excessive speeding, distracted driving, or impaired driving. Speak to your Zensurance broker for details on what may be considered a major versus minor conviction.

• Permission to rent/lease: This coverage ensures that both the owner and the temporary user (the individual leasing the vehicle) are protected under the insurance policy during the rental or lease period.

• Lienholder protection: This coverage safeguards the financial interest of the lender that provided the loan for your vehicle.

Accident benefits are required by law. They provide vehicle owners with benefits if a policyholder is injured in an automobile accident, regardless of who caused the accident.

In Ontario, standard coverage is provided for income replacement, non-earner, caregiver, housekeeping, home maintenance, medical, rehabilitation, attendant care, catastrophic impairment, death, and funeral expenses. You also have the option to increase these coverages for an additional premium, which can assist with providing financial protection and peace of mind.

 In addition, accident benefits cover any person in your vehicle injured or killed in a collision.

Accident benefits typically feature four types of coverages:

Income replacement, non-earner, and caregiver benefits

• Income replacement: If you are unable to work due to an accident, you could qualify for benefits of 70% of your gross income, capped at $400 per week. You do have the option to increase this up to $1,000 per week in coverage.
• Caregiver: This benefit may provide compensation for some expenses incurred if an insured person has been catastrophically injured and cannot continue as the main caregiver for a member of the household who is in need of care.
• Non-earner: This benefit may provide compensation if you and other insured persons are completely unable to carry on a normal life and do not qualify for an income replacement benefit or caregiver benefit.

Medical rehabilitation and attendant care benefits

Medical and rehabilitation benefits apply when medical and rehabilitation expenses are not covered by a private health plan or a government plan (e.g., OHIP).

The mandatory portion of the coverage includes up to $65,000 for non-catastrophic injuries and $1 million for catastrophic injuries. If you wish, you can increase the all injury benefit to $1 million and the catastrophic injuries benefit to $2 million.

• Medical and rehabilitation: This coverage helps with medical care and rehabilitation costs following a collision. It includes physiotherapy, prescriptions, chiropractic work, counselling, and other services not covered by a provincial health care plan or group plan (if applicable). Medical care and costs that qualify are listed in the statutory accident benefits schedule.
• Attendant care: If you are unable to continue as a primary caregiver for someone due to an accident, you will be provided with assistance at your home or health care facility to help you recover from a serious injury. It helps single-parent families, families with one stay-at-home parent, and households with other dependents. It includes up to $250 per week and an additional $50 per week for each subsequent dependent living in the house.

Death and funeral benefits

If you pass away as a result of an accident, the following are available to be paid out:

• $25,000 to the surviving spouse
• $10,000 to each of your dependents
• A maximum of $6,000 for funeral expenses
• $10,000 to former spouses if there were financial obligations to them

You have the option to increase limits up to $50,000 for the surviving spouse, $20,000 to dependents, and $8,000 for funeral expenses.

Other expenses

Additional expenses can be covered, including the following:

• Lost educational expenses: Coverage for lost tuition, books and other education-related expenses up to $15,000.
• Expenses of visitors: Reasonable expenses incurred by family and friends to visit you during recovery and treatments. Your spouse, children, grandchildren, parents, grandparents, siblings, certain other dependents, and guardians qualify.
• Housekeeping and home maintenance: Receive up to $100 per week for reasonable expenses to help with housekeeping and home maintenance should you or an insured person become catastrophically injured. Optional benefits for all types of impairments are also available for purchase. 
• Damage to clothing, glasses, and other belongings: Compensation for damaged clothing, glasses and other personal medical devices damaged during the accident.
• Cost of examinations: Compensation for the cost of examinations related to treatments as part of your recovery.

Indexation Benefit

An optional indexation benefit may be purchased, which provides that certain weekly benefit

payments and monetary limits will be adjusted on an annual basis to reflect changes in the cost of living.

Dependant Care 

There is no standard dependent care benefit for persons who are employed and care for dependants. You may purchase an optional benefit to receive weekly dependent care expenses of $75 for the first dependent, and $25 for each additional dependent, up to $150 per week.

Added Coverage to Offset Tort Deductibles

This coverage will provide a buy-down on the deductible currently imposed by the Insurance Act on any settlements you should be awarded for pain and suffering following an automobile accident.

When protecting your business, commercial auto insurance covers more than just accidents; it’s tailored for the unique risks your business vehicles face. The following are a few examples of important considerations to help you understand why it’s essential:

1. Employee use of vehicles
   If employees use your vehicles for business purposes, such as hauling equipment, materials, or tools to job sites, a personal auto policy might not cover business-related use, leaving you and your employee unprotected. Non-owned auto insurance can fill this gap by covering vehicles your business doesn’t own but are used for work. For example, if an employee is required to use their own vehicle during the course of their work day.
2. Contractors and subcontractors
   As a contractor, you might rely on your personal vehicle to get to job sites, haul tools and materials, or meet with clients. However, did you know that your personal auto insurance likely doesn’t cover these business activities? If you’re in an accident while using your vehicle for work, you could be left paying out of pocket for damages, injuries, or even lawsuits.
3. Transporting customers
   Whether operating a shuttle service or a taxi, these activities require specific commercial coverage. Personal auto policies don’t account for the additional liability that comes with having paying passengers, especially in a business setting.
4. Hauling equipment or goods
   If your business involves transporting equipment, stock, or other goods in your vehicle, a personal auto policy may not cover damage or loss to these items during transit. Commercial auto insurance with a cargo policy can help protect your vehicle and its valuable cargo.
5. Specialized vehicles and add-ons
   If your business uses specialty vehicles, like delivery vans, food trucks, or construction equipment, you’ll need commercial coverage tailored to these vehicles. Additionally, modifications or equipment added to the vehicle – ladder racks, toolboxes, or other attachments –may not be covered under a personal policy but can be included in commercial coverage.
6. Business decals and branding
   If your vehicle has business decals, wraps, or branding, it’s often considered a commercial use of the vehicle, which a personal auto policy typically excludes. In the event of an accident, the cost to replace or repair this branding may not be covered unless you have commercial auto insurance.

Legal expense insurance provides you with free access to general legal advice with an experienced lawyer, as well as coverage for legal expenses incurred throughout the legal process. This type of insurance policy may cover legal costs associated with defending your legal rights relating to employment disputes, debt recovery, contract disputes, or tax protection. You can read more about it here: Legal Expense Insurance

Cybersecurity insurance provides your organization with financial support, professionals to guide you through the cyber incident, and other resources if your company suffers damage or loss from a data breach or cyber attack. You can read more about it here: Cybersecurity Insurance.

A deductible is the amount the policyholder must pay out of pocket before insurance coverage kicks in to cover a claim. It is a form of cost-sharing between the customer and the insurer. Deductibles are described in your policy document and will vary by coverage. For instance, you could have a $1,000 deductible for comprehensive insurance and $1,000 for liability. It is important to understand the deductibles you have for all your coverages to avoid any surprises in the event of a claim. Get to know the ins and outs of your policy before making a claim and make any adjustments necessary.

Policies can generally be cancelled during the one-year term. There may be an early cancellation penalty called a short-rate cancellation, depending on the insurance company. Speak to your Zensurance broker to better understand your options.

Keeping your Zensurance broker informed about any changes to your business is crucial for ensuring that your coverage remains appropriate for the limits required, and tailored to your particular needs as your business grows.

As your business evolves – whether through expansion, acquisition of new vehicles, or change of usage of your vehicles or drivers – the risks associated with your operations can change significantly. AnOntario auto policy condition requires you to update Zensurance on any material changes within 14 days.

By promptly updating your Zensurance broker about these developments, you enable us to accurately assess your current risk profile and adjust your policies to address new exposures. Proactive communication helps avoid coverage gaps that could leave your business vulnerable to unforeseen claims or losses.

Moreover, an up-to-date insurance portfolio can lead to more accurate premium calculations and even potential discounts for risk management enhancements. Engaging in regular reviews with your Zensurance broker ensures that your business complies with contractual insurance requirements.