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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. If your vehicle is used for business purposes, a personal auto policy won’t cover you. That’s where Commercial Auto Insurance comes in, protecting your vehicles and daily operations.

At McLean & Dickey, we know your company vehicle is more than transportation; it’s a vital tool. As your local, independent insurance broker, we compare top insurers to find you the best coverage at the best price. Our goal is simple: to give you peace of mind with the right protection for your business.

Who needs Commercial Auto Insurance?

If you use a vehicle for business purposes, you need a commercial auto policy. Your personal auto policy is designed for personal use; it will not cover accidents or damages that occur while you are conducting business.

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

Transporting Goods or Equipment

Vehicles used by contractors, landscapers, or those making deliveries (including food, mail, or packages).

Taxis, limousines, or ridesharing services like Uber (in which case a specialized policy or endorsement is needed).

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

Driving instructors, sales representatives covering a large territory, or inspectors.

If you’re a small business owner and use your personal car 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, you need a dedicated commercial policy.

When is Commercial Auto Insurance required?

In Ontario, auto insurance is mandatory for all vehicles, and this requirement extends to all automobiles used for commercial purposes. Commercial Auto Insurance is required when your vehicle use crosses the line from personal to business use, primarily because of the increased risks.

Talk to one of our Commercial insurance experts today.

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What does Commercial Auto Insurance cover?

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 minimum is typically $200,000, but we strongly recommend a higher limit (up to $2 million) to ensure ample protection against costly lawsuits.

Covers medical and rehabilitation expenses, funeral costs, and loss of income for you, a passenger, or a pedestrian 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.

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.

Key Optional Coverages

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

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, such as theft, vandalism, fire, hail, or falling objects.

all perils

Combines Collision and Comprehensive coverage.

waiver of depreciation

For new vehicles, this optional coverage ensures you receive the full purchase price if the vehicle is written off, instead of the depreciated value.

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

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Is Commercial Auto Insurance More Expensive?

Commercial auto insurance can range from about $500 to over $10,000 a year. Simple business-use endorsements tend to be on the lower end, while heavy-duty vehicles and large fleets fall on the higher end. This means commercial coverage isn’t always more expensive than personal auto insurance. Several factors influence your rate, including the ones listed below:

Higher Liability Limits

Commercial policies typically  include much higher liability limits (often starting at $2 million and up) than personal policies to protect the business's larger financial assets against potential lawsuits.

Increased Risk Exposure

Commercial vehicles are statistically on the road more often, frequently during peak traffic and business hours, which increases the likelihood of an accident.

Heavier and Specialized vehicles

Larger vehicles like straight trucks or tractor-trailers casue more damage when involved in a collision, making the claims more costly. Vehicles with custom equipment are also more costly to repair or replace.

Multiple Drivers

A commercial policy covers all employees who drive the company vehicle, and the insurance company must assess the risk of all drivers' records.

Cargo and Equipment Risk

The vehicle may be carrying expensive tools, inventory, or hazardous materials, which add to the potential loss in an accident.

How much Commercial Auto Insurance do I need?

The minimum liability coverage in Ontario is $200,000, but nearly all businesses should carry $2 million or higher. The total amount you need depends on your business’s size, the value of the vehicles/equipment, the risk of your industry, and your total business assets that could be exposed in a lawsuit.

Frequently Asked Questions (FAQ)

Yes, you can. If you are a sole proprietor or use your personal car for simple business tasks like driving to client meetings, you might only need to add a “Business Use” endorsement to your personal policy. However, if the vehicle is used primarily for things like deliveries or transporting tools/equipment, you will need a dedicated commercial policy. It depends entirely on the type and frequency of business use.

In Canada, if your commercial vehicle insurance is a necessary and reasonable expense for operating your business, it is generally tax-deductible as a business expense. However, this is a tax question, and you should always consult with a qualified accountant or tax professional to ensure compliance with current CRA regulations for your specific business structure.

As an independent broker, McLean & Dickey works with a broad range of top-name insurers. We can access many different companies that offer commercial auto insurance to find the best policy for your specific needs, rather than limiting you to the offerings of a single company.

There is no single “best” or “cheapest” company, as the ideal policy depends on your business’s unique risk profile (industry, location, drivers, and vehicles). The best way to secure the most competitive rate is to work with an independent broker, like McLean & Dickey. We compare quotes and coverage options from multiple carriers to ensure you get the right coverage at the most comprehensive price.

Commercial auto insurance is a contract between your business and an insurance company. The business pays a premium, and the insurer agrees to pay for covered losses up to the policy limits. It works by protecting your company’s financial assets in the event a vehicle is damaged, stolen, or involved in an accident where your driver is at fault. It covers repair/replacement costs, legal defense fees, and financial compensation for third-party injuries or property damage.

Commercial auto insurance is also commonly termed Commercial Vehicle Insurance or Fleet Insurance (if you have five or more vehicles).

The most effective way is to contact an independent insurance broker, like McLean & Dickey.

  1. Contact Us: Provide us with details about your business, the vehicle(s) (make, model, usage), and all drivers.
  2. Compare Quotes: We shop the market with various top-name insurers.
  3. Customize & Purchase: We present you with the best options and help you customize the policy limits before finalizing your coverage.

More information about business insurance.

More information about business insurance.