Why You Need Ontario Fleet Insurance
Operating many vehicles as a part of your business can become costly. Every driver you put behind the wheel — whether to deliver a product or provide a service to your customers — is being entrusted with your business’ assets. Five or more vehicles is generally considered a fleet.
With auto and fleet insurance, Ontario companies can feel good about sending their employees out on the road. You can have peace of mind knowing that a fleet insurance policy works to reduce the risks you face should an accident occur, or property becomes damaged because of negligence on the part of your driver.
What is Fleet Insurance?
Your fleet drives your business. Insuring your company’s commercial vehicles is not only a good idea, but also necessary to comply with automobile insurance regulations in Canada. The thing about a fleet policy is that it is designed to insure a grouping of commercial, company-owned vehicles — not just one or two. With a commercial fleet insurance policy, you may insure five or more vehicles, whether those be sedans, trucks, vans or other vehicles.
Fleet insurance may also be referred to as business fleet insurance, motor fleet insurance or fleet auto insurance. A fleet insurance policy protects insured vehicles against the risk of third-party bodily injuries or property damage, as well as other events, such as theft and vandalism.
A great benefit of fleet insurance is that you can easily change the whole policy, adding a new vehicle when needed, or altering coverage limits. The best way to do this is by giving your broker a quick call.
In Ontario and throughout Canada, laws about commercial insurance may differ from the laws that govern privately-owned vehicles. That being said, any commercial vehicle operated on public roads must be insured. Familiarize yourself with the regulations and requirements for your commercial vehicles before getting them licenced and insured to be sure that your organization complies with all mandatory requirements.
Here are some examples of the coverage you might get for your fleet.
Should you or any of your employees hired to drive your company vehicles get into an accident involving one or more other vehicle(s) and be deemed partially or entirely at-fault, this portion of your fleet insurance would come into play. Third-party liability can cover you for legal expenses if you should be sued after the accident or if the injured parties seek compensation. This liability coverage extends beyond your businesses’ general liability insurance.
Car accidents can range in severity from minor bumps and scrapes to tremendous, life-altering events. If you or one of your employees gets into a collision, accident benefits can cover loss of income, medical expenses and even funeral expenses.
Canada-wide, the minimum level of accident benefits coverage is rather low when compared with medical costs and more. For a company, it’s advised you raise this amount to ensure all your company vehicles and staff are adequately insured.
Even though it’s mandatory Canada-wide to have auto insurance, some individuals choose not to carry insurance. It’s a sad reality, but one that needs to be accounted for, nonetheless. Uninsured or underinsured automobile coverage is required in some provinces, like Ontario, and covers you if one of your employees is injured or even killed by an uninsured or underinsured driver, or due to a hit-and-run. This coverage can pay for the cost of physical damages and injuries.
Although optional, collision coverage is highly recommended. If one of your company vehicles is damaged in a collision with another vehicle or an object, like a street post, this coverage would protect you from having to pay to repair any of the damages or replace the vehicle. This coverage applies whether you are at-fault or not. Collision coverate is subject to a deductible.
Also subject to a deductible, and also optional, comprehensive coverage insures your vehicle if any damages result from something besides a collision or an accident, such as vandalism, water loss, theft or fire.