Commercial Auto Insurance Newfoundland

Commercial Auto Insurance Newfoundland

A customized commercial auto insurance or fleet vehicle insurance policy covers the cost of damages to your business vehicles in Newfoundland.

Zensurance - Newfoundland Commercial Auto Insurance

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Commercial Auto Insurance Coverage Newfoundland

The vehicles you own and drive as a self-employed contractor or small business owner are critical assets that should be covered with a customized Newfoundland commercial auto insurance policy.

Why? Because unexpected collisions, car accidents, or damages to a vehicle can happen anytime without warning. You are responsible for paying for the damages following an accident without a commercial auto insurance policy. Personal car insurance does not cover business vehicles or cars, vans, and trucks used for business purposes, and the liability for collisions or auto claims can impact your company’s survival.

Plus, drivers of commercial vehicles across Newfoundland and Labrador typically face more significant risks because they drive longer distances, spend more hours on the road, and usually carry expensive materials, equipment, or people with them.

You need a commercial auto or fleet vehicle insurance policy (if your company owns five or more vehicles) from a Canadian small business insurance brokerage you can trust if you need to file a claim.

So, whether you’re a self-employed general contractor in Labrador City, a restaurant owner in Happy Valley-Goose Bay, or the owner of a tourism company in a large city like St. John’s, let Zensurance find the policy you need at a price you can afford.

Frequently Asked Questions About Commercial Auto Insurance

What is commercial auto insurance?

Also called business car or auto insurance, commercial auto insurance covers the cost of your company’s vehicle or any vehicle used for business purposes from damage and loss, including cars, pickup trucks, vans, and trailers. It also includes coverage for driver injuries.

What does a commercial auto policy cover?

A standard or basic commercial auto insurance policy consists of four mandatory coverages. They are:


  • Third-Party Liability

Third-party liability coverage covers you if you injure another driver or damage their property with your vehicle. The minimum mandatory coverage limit is $200,000 for any one accident, but choosing a higher coverage amount is recommended.


  • Direct Compensation-Property Damage

Protection for damages to and loss of use of your vehicle and its contents if another motorist is at fault for an accident or collision that you collect directly from your insurance provider.


  • Accident Benefits

Accident benefits cover you and your passengers’ medical and rehabilitation bills if injured in an accident. It also includes funeral expenses, loss of income benefits, and death benefits if you or your driver are killed in an accident.


  • Uninsured Auto

If you’re injured and your vehicle is damaged by an uninsured motorist or because of a hit-and-run accident, this coverage pays for damages to your vehicle and covers the cost of your physical injuries.


Optional coverages:


  • Collision or upset

Collision coverage pays for damages to your vehicle when you are at fault for an accident with another vehicle or if you hit a stationary object.


  • Comprehensive

Covers the cost of a broad range of damage and loss to your vehicle, including theft, vandalism, fire, hail and severe weather, and flying or falling objects.


  • All perils

All perils insurance is a combination of collision and comprehensive coverages.


  • Employers’ Hired and Non-Owned Auto Liability

Coverage for vehicles your business does not own but rents or leases or vehicles owned by your employees used for business purposes.


If your business regularly stores customer vehicles, you may require a garage liability insurance policy.

How much does commercial auto insurance cost?

What your commercial auto policy costs depends on a variety of factors insurance providers consider, including:

  • The make, model, and year of the vehicle you drive
  • The location of your business
  • Your driving record and years of experience as a motorist
  • The number of kilometres the vehicle travels annually 
  • Where the vehicle is regularly parked or stored
  • What the vehicle is used for (transporting goods, people, or both)
  • Your business’s auto insurance claims history
  • What your policy’s coverages are, their limits, and the deductibles
What’s the difference between commercial auto and fleet insurance?

Commercial auto insurance is designed to protect one vehicle. A commercial fleet insurance policy covers five or more vehicles. Both types of coverage apply to vehicles owned by businesses or self-employed contractors.

Coverage Requirements in Newfoundland

According to Newfoundland and Labrador’s Automobile Insurance Act, among the insurance requirements all owners of commercial vehicles operating in the province include:

  • Business vehicles and trailers must be registered in the province and undergo an annual safety inspection.
  • All business vehicles must have a valid commercial auto insurance policy and provide proof of insurance when registering a vehicle.
  • Your business’s commercial vehicle must have a valid motor vehicle permit and licence plates.
  • Business owners must provide insurance validation by submitting their commercial auto, fleet vehicle, or garage liability policy to the provincial government’s Motor Registration Division.

Commercial Auto Claims Examples

business vehicle in an car accident

Problem: While making a left turn at a busy intersection in Mount Pearl, another driver runs a red light and smashes into the side of your company’s delivery van, significantly damaging the vehicle and injuring your employee.

Outcome: Your commercial auto insurance policy’s direct compensation-property damage coverage may pay for the repairs to the van, and your optional accident benefits coverage will cover your employee’s medical and rehabilitation expenses.

commercial truck damaged by storm

Problem: While parked overnight in your construction business’s lot in Corner Brook, a powerful windstorm rips a branch off a large tree nearby that falls on your pickup truck, shattering the windshield.

Outcome: Your commercial auto insurance policy’s optional comprehensive insurance may pay to replace your pickup’s windshield.

commercial vehicle accident

Problem: While making a delivery to a customer, an employee of your hardware store in Bonavista accidentally rear-ends another vehicle. Your employee is deemed to be at fault for the collision.

Outcome: Your commercial auto insurance policy’s optional collision coverage may pay to repair the damage to the other motorist’s vehicle, and the third-party liability coverage will cover the other driver’s medical expenses.

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Ready to start? Let’s get a quote!

Get your business vehicle covered with a commercial auto insurance policy quickly and easily through Zensurance.

Fill out an online application for a free quote. Our friendly brokers can answer your questions, advise you on the types of coverage and limits your policy should have, and customize the policy to suit your needs and budget.