If you’re a florist, an owner of a restaurant, a contractor, or any other type of entrepreneur, you’ve probably seen the phrase “commercial vehicle insurance” frequently with regards to your business. However, when you consider the numerous other costs that come with daily life, you may be thinking, “Is this something I require?” The short answer is yes. To help you comprehend why commercial vehicle insurance is crucial, learn more about how this specific insurance can protect employees, you, and your company.

Does a business owner require business auto insurance?

If you run any business that requires the usage of vehicles, the vehicle will need the insurance of commercial vehicles. For example, suppose you run a bakery and regularly make deliveries using your car after hours. In that case, it is considered commercial, so a commercial vehicle insurance policy is necessary.

What types of things will commercial auto insurance will cover?

Although the types of insurance available differ from province to province, the primary protections for areas that don’t have national coverage (British Columbia, Manitoba, and Saskatchewan) are the following:

Liability: This insurance covers you if somebody else is injured or killed or their property gets damaged. It will cover the damages resulting from lawsuits filed against you, up to the amount of your coverage. It also will cover the cost of settling claims. The law requires you to be covered by a minimum Third-Party Liability Insurance (varies according to the province); however, there are options to increase the minimum.

Accident Benefits: Protection will provide you or other insured people with financial assistance if injured in an auto accident regardless of the person accountable for the collision. It covers rehabilitation, income replacement, and other essential services to recover.

Loss or damage: This offers various insurance options for your car that protect you from direct and unintentional loss or damage to your vehicle and its accessories

There are four options for coverage:

All Perils: Combinates the Collision and Upset and Comprehensive coverages described below.

Collision or Upset: An unexpected event or upheaval Insures damages if your car collides with an item, such as another vehicle, or flips over.

Specific Perils: Insures your vehicle against damage and damage that get caused due to particular dangers, such as fire, theft or attempt to steal, storms, lightning, hail, or rising water or earthquake.

Comprehensive: Protects your vehicle against damage or loss by the exact causes covered by Specified Perils and also falling or flying missiles, objects, and vandalism.

What factors affect the price of an insurance policy for commercial vehicles? Policy?

There are a variety of variables that could impact the total price of insurance for commercial vehicles. These factors could include the year of the vehicle model, make, year and locations of the company, the coverages, and deductibles you choose, and the experience you have with auto claims.

Do you want to learn more about commercial vehicle insurance? Contact Commercial Insurance, Ottawa at (613) 454-5640.