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Commercial Auto Insurance
in Ontario

Protecting the wheels that drive your business.

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Protect your business vehicles with the right Commercial Auto Insurance.

Coverage for your company's cars, trucks and fleets.

Contractors, delivery services, and trades professionals across Barrie, Orillia, and Muskoka rely on their vehicles every day. However, a common misconception is that a personal policy will protect you while on the job. At McLean & Dickey, we lead with the most important distinction: personal auto insurance does not cover vehicles used for business purposes. If your vehicle is involved in an accident while being used for work, your personal claim could be denied.

That is where Commercial Auto Insurance comes in—protecting your vehicles, your drivers, and your daily operations. We know your company vehicle is more than transportation; it’s a vital tool for your livelihood. As your local, independent insurance broker, we compare

Who needs Commercial Auto Insurance?

If you use a vehicle for business purposes, you need a commercial auto policy. A common risk for Ontario business owners is assuming a personal policy provides protection on the job; however, personal auto insurance is designed for personal use and will not cover accidents or damages that occur while conducting business.

You need commercial auto insurance if your vehicle is used for:

Transporting Goods or Equipment

This includes vehicles used by contractors, landscapers, or those making deliveries of food, mail, or packages.

Taxis, limousines, or ridesharing services require specialized policies or endorsements.

Trucks or vans with mounted equipment such as snowplows, hydraulic lifts, or tool racks.

This applies to driving instructors, sales representatives covering large territories, or property inspectors.

Talk to one of our Commercial insurance experts today.

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When is Commercial Auto Insurance Required?

In Ontario, auto insurance is mandatory for all vehicles, including those used for commercial purposes. Commercial Auto Insurance becomes a requirement the moment your vehicle use crosses the line from personal to business use. This is primarily due to increased risks, such as higher time spent on the road and the liability associated with transporting business assets.

Individual vs. Fleet Insurance

Our experts help you determine the most cost-effective structure for your business:

  • Individual Commercial Policy: Ideal for small businesses operating 1 to 4 vehicles.
  • Fleet Insurance: A specialized solution for businesses with 5 or more vehicles, often providing streamlined administration and volume-based pricing.

The "Business Use" Endorsement

If you are a small business owner and use your personal car only occasionally to drive to a client meeting, you might only need a “Business Use” endorsement on your personal policy. However, if that vehicle is essential to your day-to-day work or carries permanent equipment, a dedicated commercial policy is necessary to ensure your claims are not denied.

Protect the wheels that drive your business. Talk to one of our Commercial Insurance experts today for a custom quote.

What does Commercial Auto Insurance cover?

In Ontario, every commercial auto policy must include a set of mandatory coverages designed to protect the public and your business assets. However, while the law sets the minimums, McLean & Dickey focuses on ensuring you have the right limits to truly be “well protected”.

Mandatory coverages in Ontario

A smiling contractor stands confidently by a service van, showcasing tools and a professional demeanour.

Protects your business if you or an employee is at fault for an accident that results in injury to another person or damage to their property. In Canada, the legal minimum is typically $200,000, but we strongly recommend a higher limit of $2 million to ensure ample protection against costly, modern lawsuits.

Covers medical and rehabilitation expenses, funeral costs, and loss of income for you, your spouse or your dependants injured in an accident, regardless of who was at fault.

Direct Compensation Property Damage covers damage to your commercial vehicle and its contents if you are not at fault for a collision involving another insured vehicle in Ontario. This allows you to deal directly with your own insurer for a faster recovery.

Provides coverage if you or a passenger is injured or your vehicle is damaged by an at-fault driver who is uninsured or by a hit-and-run driver.

Enhance Your Security with Optional Coverages

You should consider these coverage options when purchasing commercial auto insurance.

While mandatory insurance gets you on the road, optional coverages ensure your business isn’t derailed by unexpected repair costs or total losses. At McLean & Dickey, we help you identify which of these enhancements are vital for your specific operations:

Collision OR UPSET

Pays to repair or replace your commercial vehicle following an accident with another vehicle, an object, or if it rolls over.

comprehensive

Covers non-collision damage that is often out of your control, such as theft, vandalism, fire, hail, or damage from falling objects.

all perils

This is the most robust option, combining Collision and Comprehensive coverage into one seamless protection plan.

waiver of depreciation

Essential for new business vehicles, this ensures you receive the full purchase price if the vehicle is written off, rather than a lower depreciated value.

Cross-Border (US) Coverage

If your business operations take you across the border, we can add specific endorsements to ensure your liability protection remains valid in the United States.

Specialized Solutions: The Garage Auto Policy

For our neighbours who own auto repair shops, detailing centers, or dealerships in Orillia and Barrie, a standard commercial policy isn’t enough. We offer specialized Garage Auto Policies to cover your unique liability when a customer’s vehicle is in your “care, custody, or control”.

Relax. We’ll find you the best insurance coverage so you’re protected.

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Is Commercial Auto Insurance More Expensive?

A common question for business owners in Orillia and Barrie is whether commercial coverage will break the budget. The truth is that commercial auto insurance isn’t always more expensive than personal insurance; it simply scales with your risk.

Premiums can range from approximately $500 to over $10,000 per year. A simple “Business Use” endorsement for a consultant’s car will fall on the lower end, while heavy-duty trucks and large fleets (5+ vehicles) sit on the higher end due to their complexity.

Higher Liability Limits

Commercial policies typically carry limits of $2 million or more to protect your larger business assets against potentially devastating lawsuits.

Increased Risk Exposure

Statistically, business vehicles are on the road more often and during peak traffic hours, increasing the probability of an incident.

Heavier and Specialized vehicles

Larger trucks cause more damage in collisions, and vehicles with custom equipment or hydraulic lifts are more expensive to repair or replace.

Multiple Drivers

Your policy covers all employees who drive company vehicles; therefore, the insurance company must assess the collective risk of all driver records.

Cargo and Equipment Risk

Carrying expensive inventory, hazardous materials, or specialized tools adds to the potential loss in the event of an accident.

How much Commercial Auto Insurance do I need?

While the legal minimum liability coverage in Ontario is $200,000, this is rarely enough to protect a modern business. We strongly recommend that nearly all businesses carry at least $2 million in liability.

The total amount of coverage you need depends on:

  1. The size of your business and total assets.
  2. The value of your vehicles and any permanently attached equipment.
  3. The specific risks of your industry (e.g., long-haul trucking vs. local flower delivery).

Frequently Asked Questions (FAQ)

The primary difference is the purpose of use. Personal auto insurance is designed for commuting and personal errands, while commercial insurance is required if a vehicle is used for business activities, such as transporting tools, making deliveries, or carrying passengers for a fee. A personal policy generally will not cover accidents that occur during business operations.

Fleet insurance is a specialized policy for businesses that operate multiple vehicles. In Ontario, you typically need five or more vehicles to qualify for a fleet policy. Fleet insurance offers more flexible coverage and simplified administration compared to insuring each vehicle on a separate individual commercial policy.

Yes, in many cases, personal use can be included. If you use your business vehicle for personal errands outside of work hours, we can add “personal use” provisions to your policy. It is essential to disclose this to your McLean & Dickey broker to ensure you have seamless protection during both business and leisure.

If your business involves driving into the United States for deliveries, service calls, or client meetings, you must ensure your policy includes a cross-border endorsement. This ensures your liability limits meet U.S. requirements and that your coverage remains valid across the border.

A Garage Auto Policy is a specific type of coverage for businesses that handle customers’ vehicles, such as auto repair shops, detailing centers, or dealerships. It provides unique liability protection for when a customer’s vehicle is in your “care, custody, or control”.

More information about business insurance.

More information about business insurance.

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