Key facts
- Using a personal auto policy for business driving can lead to a denied claim.
- Auto policies generally do not cover tools carried in the vehicle. Tools need their own coverage.
- Employees who drive their own vehicles for work can create liability for you. Non-owned auto coverage helps.
- Trailers, snow plows and attached equipment need to be declared.
- Vehicles over 4,500 kg gross weight may also need a CVOR.
Which trades need commercial auto
- HVAC contractors and service technicians
- Landscapers, lawn care and snow removal crews
- Carpenters, cabinet makers and finish carpenters
- Electricians and plumbers
- Roofers, painters and drywallers
- Flooring, tile and masonry contractors
- Renovation and general contractors
- Cleaning crews and handymen
- Delivery drivers and couriers
- Artisans who deliver or install their work
- Owners of cube vans, cargo vans and pickup trucks
Personal use and business use
An insurer sets the price and the wording based on how the vehicle is used. If you drive to a job site each day, carry tools, tow a trailer or drive between customers, your vehicle is probably a business vehicle. Driving only to and from a fixed place of work is different from driving all day between clients. Tell the insurer how you really use it. A claim can be reduced or denied if you did not.
Coverages that matter for a work vehicle
- Third-party liability. Pays if you injure someone or damage their property. Many trades choose $2 million or more, and some contracts require it.
- Accident benefits. Ontario requires accident benefits on every policy. We explain the choices and record them properly.
- Collision and comprehensive. Covers damage to your vehicle from a collision, theft, fire, vandalism and other causes, less your deductible.
- Tools and equipment coverage. Covers tools and equipment in the vehicle, at the job site or in a trailer. This is a separate policy or add-on, not part of the auto policy.
- Trailer coverage. Covers utility and equipment trailers, and liability while towing.
- Snow plow and attachment coverage. Covers plows, spreaders and other attachments and the liability that comes with plowing.
- Non-owned and hired auto. Covers liability when employees use their own vehicles for work or you rent a vehicle.
- Loss of use and rental. Helps pay for a replacement vehicle while yours is being repaired.
- Cargo. Covers goods you carry for customers or your own stock.
Common mistakes with work vehicles
- Insuring a work van as a personal vehicle to save money
- Assuming the auto policy covers the tools inside
- Letting employees drive their own vehicles for work without non-owned coverage
- Leaving a driver with a poor record off the policy
- Forgetting to declare a trailer, plow or attached equipment
- Not updating the policy when you add a vehicle or change how it is used
Fleets
If you operate several work vehicles, you may qualify for fleet coverage. Insurers often use the word fleet once you have about five or more vehicles. Fleet insurance can save time and money by putting all vehicles and drivers on one policy with one renewal date. See our commercial auto and fleet page for larger operations.
Drivers with a difficult record
One driver with tickets or an at-fault claim can affect a whole policy. We ask whether insurers will exclude that driver, rate them separately or move the vehicle to a specialty market. Never leave a driver off a policy to save money. If an unlisted driver has an accident, the claim may be denied.
What to have ready for a quote
- A list of vehicles with year, make, model and VIN
- Licence numbers and driving history for every driver
- What the vehicle is used for and how far it travels each year
- What you carry, including tools, materials and equipment
- Any trailers, plows or attached equipment
- Your business name, trade and years in business
- Proof of your current insurance and claims history
Example scenarios
Personal auto policy and commercial auto policy
| Comparison | Personal auto policy | Commercial auto policy |
|---|---|---|
| Use | Commuting and pleasure | Business use, tools, customers, deliveries |
| Liability limits | Often $1 million | Often $1 million to $2 million or more |
| Tools carried | Generally not covered | Covered with tools and equipment coverage |
| Employees driving | Not covered for business | Non-owned auto available |
| Trailers and plows | Not covered unless declared | Can be declared and covered |
| Best for | Everyday driving | Trades, contractors and delivery |
Questions Ontario clients ask
- Do I need commercial auto insurance for my work van?
- If the van is used for business, yes. A personal policy may not respond properly after a business-related claim. We check how you use the vehicle and place the right coverage.
- Are my tools covered under my auto policy?
- Generally no. Auto policies cover the vehicle, not the tools carried in it. Tools and equipment coverage is the fix.
- What if I use my own pickup for work?
- If you use it for business beyond commuting, tell your insurer. It may need a business use rating, and your policy may need adjustments.
- Do I need a certificate of insurance for my vehicle?
- Some clients and contracts ask for one. We can issue a certificate showing your auto liability limits.
- What is a CVOR and do I need one?
- A CVOR is the Commercial Vehicle Operator's Registration. Commercial vehicles over 4,500 kg gross weight that operate in Ontario generally need one. It is separate from insurance. We tell you if your vehicles may be affected.
- Can you insure drivers with tickets or claims?
- Yes, often through specialty markets. Tell us the details so we can find the right options.
- Is there a fleet discount?
- Some insurers offer better pricing or simpler administration once you reach a certain fleet size. We compare fleet and individual options.
- Can I add a trailer or a plow?
- Yes. Tell us what you tow and what equipment is attached so it is declared properly.
Abhishek Bedwal · RIBO Certified Insurance Broker
Abhishek is a Registered Insurance Broker of Ontario (RIBO) licensed across the province, with local expertise across Durham Region, Ottawa, Niagara Falls, Brantford and Windsor. Coverage is placed through The Insurance Lab, a division of BrokerUnion, giving clients access to 20+ Canadian insurers so the policy fits the risk — not the other way around.
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