Commercial Fleet Insurance in Ontario

What is Fleet Insurance?

Commercial fleet insurance are contracts of auto insurance coverage for at least 5 company vehicles. Commercial businesses, taxi companies, farms, and some specialty businesses like limousine services commonly insure their fleet of vehicles under one commercial fleet insurance policy.

Below, our Huronia insurance brokers have outlined what constitutes a fleet, and provides brief explanations of what each area of coverage involves.

3 Parts Comprising the Definition of Fleet

For the purposes of commercial fleet insurance in Ontario, all three parts must be satisfied to constitute a Fleet:

1. Fleet must have 5 vehicles minimum
2. Fleet must either be Commonly Owned or Commonly Managed
3. Fleet must be used for commercial, business, or public purposes

Benefits of Fleet Insurance

There are 5 sections associated with your commercial fleet insurance policy:

1. Direct CompensationCovers loss of use and damage to your vehicle if someone else was at fault for the accident.
2. Physical DamageIncludes the following 4 sections of coverage:
   1. Collision: Vehicle impact with another object such as a building, a vehicle, a guardrail, or roadway (including rollover).
   2. Specified Perils: Vehicle theft, fire, break-in, flying objects, falling objects, vandalism, natural disasters, and a host of other circumstances.
   3. Comprehensive: Losses not addressed by Collision, including impact with an animal.
   4. All Perils: Combines Collision, Upset, and Comprehensive coverage, including loss or damage caused by a person living in your home who steals your vehicle.
3. Third Party LiabilityCoverage for property damage or when third party injury or death is involved. Currently, the minimum coverage in Ontario is set at $200,000, but it is strongly recommended that the limit for each vehicle be extended to at least $1,000,000.00.
4. Uninsured AutomobileCoverage in the event of death or injury caused by an uninsured driver or vehicle, including hit-and-run.
5. Policy EndorsementsThere are 5 most commonly used endorsements to enhance your commercial fleet insurance coverage.
   1. Fleet Protection or Forgiveness Coverage for AccidentCovers driving record and preferred rating in the event of a first-fault.
   2. Fleet Protection Coverage for IndividualsInvolves not only the driver but also a passenger such as a crew member.
   3. Fleet Coverage For Loss of UseIf damage is covered by an insured peril, expenses required to rent another vehicle during repair are then covered.
   4. Fleet Depreciation Deduction RemovalDepreciation not applied in the event of a loss to owned or leased vehicles (usually within 24-28 months of lease or purchase). Coverage variation depends on insurance company policy.
   5. Fleet Liability for Non-Owned VehiclesCovers damage to a vehicle you may not own such as borrowed vehicle or rental.

As you can see, there are multiple factors to consider before purchasing commercial fleet insurance.

For more information about commercial fleet insurance, or if you still have questions, contact our Huronia Insurance Group brokers today by calling 1-866-955-8386.

You can also send our business insurance brokers an email or fill out our online contact form.

Request a quote.