The short answer
Commercial auto insurance covers vehicles that a business owns, leases or uses for work: liability, damage to the vehicle and injury cover, rated for business use. It differs from a personal policy in how the vehicle is classed, who drives it and what is carried. A licensed broker matches the business with insurers who accept its vehicles and drivers.
- Trades, contractors and installers with vans, pickups and equipment trailers
- Delivery, courier and food businesses using company or contractor vehicles
- Consultants and sales teams whose staff drive to client sites several times a week
- Owners who currently insure a work vehicle on a personal policy and wonder if it is correct
- Businesses that rent or lease vehicles, or let employees use their own cars for work
2 licensed brokers in the network handle this. In Alberta, Canada, a request for commercial auto insurance can be offered to up to three of them, chosen because they are licensed for this line and place. They are test brokers while we are in demo.
See the brokers → Outside Alberta, Canada you can prepare and save a request today; sending opens place by place. Brokers answer with their own quotes. Broker.insure does not quote, advise or take commission.
01 / What it covers
The parts worth understanding
Liability
What the business owes if a vehicle causes injury or property damage. Business use can lead to larger claims than personal use, so ask what limit the policy carries and whether an umbrella or excess layer is available.
Collision and comprehensive
Damage to the owned or leased vehicle, from a crash or from theft, fire, vandalism and weather. Deductibles apply, and a lease or loan may require both.
Hired and non-owned auto
Protects the business when it rents a vehicle or when an employee uses a personal vehicle on work errands. It is often a separate endorsement, and it usually protects the business rather than covering the employee's own car.
Equipment and tools in the vehicle
Tools, ladders, signs and materials in the vehicle are frequently excluded or limited under the auto policy. Ask whether they sit under a separate contractor's equipment or inland marine arrangement instead.
Injury and uninsured motorist
Injury benefits and protection against an at-fault driver without enough cover. How this works depends on the province, so confirm what is included for the driver and for passengers.
Specialised use
Vehicles that carry passengers for pay, tow heavy loads, move hazardous goods or run on a defined route are rated differently, and some uses are not accepted by a general commercial auto insurer.
02 / Get ready
Bring this, and expect these questions
Gather
- A schedule of every vehicle: year, make, model, vehicle identification number and the garaging address
- Who owns each vehicle, or whether it is leased, financed or registered to someone personally
- A list of drivers with licence numbers, years of experience and any claims or convictions
- A plain description of how each vehicle is used, the usual radius of travel and a typical day's route
- What is carried or towed, including tools, materials, products or passengers
- Whether employees use personal vehicles for work, and how often
- Loss history for the business's vehicles over the past several years
- Any driver monitoring, telematics, dash cameras or written driver policies
- Your current policy or renewal notice, with limits and deductibles
A broker will ask
- How is each vehicle used: service calls, deliveries, sales visits or hauling?
- How far do the vehicles travel from the garaging address, and do they cross provincial or national borders?
- Who drives, are they employees or contractors, and how are drivers approved?
- What do you carry or tow, and is any of it hazardous or high-value?
- Do employees ever use their own cars or rent vehicles for work?
- Has the business had any vehicle claims, and what changed afterwards?
- Do you have written driver standards, telematics or a vehicle check routine?
- Do you need a higher liability limit because of customer contracts or what is carried?
Not sure of an answer? Leave it. "Not known yet" is a fine answer, and a broker will help you fill it in.
03 / Build your request
Answer a few questions. Get your own list.
Pick what fits. Your answers shape the list beside them, and they are saved to your request as plain facts a broker can read. "Not sure yet" is always a fine answer.
04 / Three situations
See which one sounds like yours
An electrician with two vans and a part-time helper
A small electrical contractor in Red Deer runs two vans and employs one apprentice who also drives. A general contractor on a new job has just asked for proof of commercial auto cover, and the owner still has the vans on personal policies.
First steps. List both vans, the driver details and what is carried in each, and bring the personal policies. Ask a broker how a commercial policy treats tools, whether the apprentice is rated, and what proof the general contractor is likely to need.
A bakery that delivers to restaurants
A wholesale bakery in Montreal makes early-morning deliveries with a refrigerated van and sometimes asks a part-time employee to drop off a rush order in his own car. A recent near-miss made the owner wonder what would happen if that employee had an accident.
First steps. Write down the delivery routes and hours, the vans and the names of everyone who drives for work. Ask the broker about hired and non-owned cover for the employee's car and whether spoilage of food in the van sits on this policy or on another.
A consulting firm with a pool of rental cars
A firm of engineers sends staff to client sites across three provinces, mostly in rented vehicles and occasionally in staff cars. It owns no vehicles, and a client contract has just raised a question about the firm's insurance for rented and personal cars used on its work.
First steps. Gather the contract wording that raised the question, a typical travel pattern and the rental agreements. A broker can explain how hired and non-owned cover works for a business that owns no vehicles, and what the rental company's own protection leaves open.
05 / Words you will hear
The jargon, in plain words
- Hired and non-owned auto
- Protection for the business itself when it rents a vehicle or when a worker drives a personal car on an errand. It addresses the firm's legal exposure, not repair of those cars.
- Garaging address
- The place where a vehicle is parked overnight. Insurers use it to judge theft and accident risk, so it needs to be accurate and updated if a vehicle moves.
- Business-use class
- The rating category a vehicle falls into based on what it does, such as service calls or deliveries. A wrong category can lead to a refused claim.
- Inland marine
- A type of policy that follows tools, equipment and goods as they move between job sites, which a vehicle policy often does not cover for theft or damage.
- Radius of operation
- How far from its base a vehicle normally travels. Longer radii, and trips across borders, change how an insurer rates the unit and what filings may be needed.
06 / Common mistakes
What trips people up
- Insuring a work van on a personal policy and finding after a claim that business use was not accepted.
- Leaving a part-time driver, a subcontractor or an apprentice off the driver list.
- Assuming tools, materials or stock in the vehicle are covered by the auto policy.
- Forgetting that employees driving their own cars for the business creates a separate exposure for the business.
- Choosing a low liability limit when customer contracts or the cargo suggest a higher one.
- Not updating the policy when a vehicle is added, sold or moved to a different garaging address.
Ready when you are
Turn this into one clear request.
Save it, add what you know, and choose when to send it. A licensed broker who handles commercial auto insurance takes it from there.
07 / Questions people ask
Straight answers
When do I need commercial auto insurance instead of personal?
When a vehicle is used for business purposes beyond ordinary commuting, such as service calls, deliveries, carrying tools or materials, transporting clients or being registered to a company. Insurers draw the line differently, so describe the use fully and ask a licensed broker which class applies. Misdescribing use can put a claim at risk.
What is hired and non-owned auto insurance?
It covers the business's legal liability when it rents a vehicle, or when employees use their own vehicles on business errands. It does not usually cover damage to the rented or personal vehicle itself. Businesses without owned vehicles often need it, particularly where contracts require evidence of cover.
Are my tools and equipment covered by commercial auto insurance?
Often not, or only to a small limit. Tools, ladders and materials kept in a vehicle are commonly handled by a separate contractor's equipment or inland marine policy. Ask the broker how they are treated and what happens if they are stolen from a locked or unlocked vehicle.
Can I put my company vehicle in my own name to keep personal insurance?
Who registers a vehicle does not change how it is used. If the vehicle is used for business, the insurer needs to know. A policy written on false information can lead to a refused claim or a cancelled policy. A broker can explain how company-owned and owner-owned vehicles are usually arranged.
Does commercial auto insurance cover my drivers?
It generally covers drivers listed on the policy, or those who drive with permission, depending on the wording. Many insurers ask for driver records and may decline drivers with certain convictions. Tell the broker about everyone who will drive, including part-timers, and ask how new drivers are added mid-term.
Do I need commercial auto insurance if I only drive to client meetings?
It depends on the insurer and the frequency. Some personal policies accept occasional business use while others require a business class once driving is regular or involves carrying goods. A broker can ask the right questions. Do not assume; confirm in writing what your current policy says.
General information, not insurance advice. Broker.insure is a directory and request service: it is not an insurer and does not quote, bind or advise. Policy terms, availability and what is required where you live depend on your situation and on licensed professionals. Updated 2026-10-31.