We Know Commercial Auto Insurance

It's no secret that all cars, trucks and other vehicles must be insured to be driven legally on Canada's roads. Even if it wasn't legally mandatory, it would be unwise to drive your commercial vehicle uninsured, as it could result in major repair or replacement costs that could injure your company's bottom line, not to mention the potentially astronomical financial losses associated with being sued and found liable for a hefty settlement. 

With the best possible commercial auto insurance, Calgary business owners don't have to worry about the massive financial setbacks that can result from an accident with a commercial vehicle. Whether you have one truck that you use to carry materials to job sites or a whole fleet of delivery vans, you need the financial protection afforded to you by the right commercial auto insurance. Calgary business owners can call the experienced insurance brokers at Krywolt Insurance to find out more about how a Calgary commercial auto insurance policy would help your business.

Who Needs Commercial Auto Insurance?

Calgary residents already know that in Alberta, it is mandatory for all drivers to have personal or commercial car insurance. Calgary residents, however, may not know that if they use their vehicle for tasks related to their occupation, profession or business—aside from commuting—they might need a commercial policy as opposed to a personal auto insurance policy. There are a few different factors that are important to consider when determining whether you should have Calgary commercial auto insurance and the type of commercial car insurance that best meets your needs. These include:

Use of the Vehicle

This is the primary factor that dictates whether you need commercial auto insurance. Calgary business owners typically use commercial vehicles to serve a specific, business-related purpose, such as:

• Transporting people or goods in your vehicle for a fee
• Providing delivery services with your vehicle
• Visiting clients
• Offering ride-share services
• Conducting a service with your vehicle
• Hauling a considerable weight in tools or equipment
• Towing a trailer used to conduct your business

Since your vehicle is used for different work-related purposes, it is exposed to risk factors different from personal vehicles. However, if your commercial use is only occasional and does not involve transporting people or goods—such as making deliveries—you may not need commercial auto insurance. Calgary business owners can benefit from speaking to a qualified broker at Krywolt Insurance to learn the best coverage for their needs.

Type of Vehicle

Your vehicle type influences whether you need commercial auto insurance. Calgary vehicles that are used specifically for your trade or profession, as well as heavy trucks and toll vehicles, are typically more costly to replace than other types of cars. To protect your vehicle in this case, it's best to have Calgary commercial auto insurance.

For example, the following vehicles would likely need Calgary commercial auto insurance if used as part of your occupation:

• SUVs—for instance, if used to transport mobile vets; or physicians who visit patients in remote areas.
• Jeeps—often used for commercial purposes.
• Trucks—including semi-trucks and delivery trucks that are used to transport tools, equipment or goods.
• Tractor Trailers—including other farming equipment, such as seeders and harrows.
• Trailers—when used to transport goods, materials or animals.
• Vans—including mobile pet clinics or food trucks.

If they have any questions about whether a vehicle qualifies for commercial car insurance, Calgary business owners can talk to our Krywolt Insurance brokers and find out more.

Vehicle Owner

Are you the sole owner of your vehicle? In that event, you may only need personal auto insurance and not commercial auto insurance. Calgary business owners should be aware that this depends on how some of the other factors listed here fit into the puzzle of whether they need business vehicle coverage. However, if the vehicle in question belongs to a business, corporation, or employer, a Calgary commercial auto insurance policy will likely be required to ensure it is properly covered.

Protect Your Vehicle Fleet

Obviously, if your Calgary or Alberta business owns an entire fleet of vehicles, then it's integral you have commercial vehicle coverage for each car, truck, bus, etc. Commercial vehicle insurance is a great way to ensure these important assets are properly protected while getting the most out of your Calgary commercial auto insurance policy because all the vehicles listed as part of the fleet will be covered in the event of damage and legal actions.

It’s not a want, it’s a necessity to have proper commercial auto insurance. Calgary commercial auto insurance policies are a crucial piece of protection if you or your employees use the vehicle for business purposes, such as transporting goods, animals or people, or if you provide a service using the vehicle. 

But while no two types of businesses are alike—such as a company van traveling between job sites or a heavy-duty vehicle used for everyday business operations—some standard things are included in most policies for commercial auto insurance. Calgary commercial auto policies typically include the following type of coverage:

• Third-party liability insurance
• Accident benefits coverage
• Public liability and property damage/PLPD coverage
• Collision coverage
• Comprehensive coverage
• Uninsured automobile coverage
• Specified perils insurance
• Loss of use insurance/SEF 20
• Rental vehicle insurance/SEF 27
• Accident forgiveness/SEF 39

With the right mandatory and optional coverage options for your commercial auto insurance, Calgary business owners and employees are fully covered based on their needs in the worst-case scenario. These common types of Calgary commercial auto insurance coverage are further explained below.

Third-Party Liability Policy

As part of any mandatory car insurance policy for both personal and commercial vehicle insurance, third-party liability coverage protects you from damage to another person or their property while driving your vehicle. An example of this could be if you're delivering flowers and rear-end another driver on your way to a client. The third party you collided with may file a claim against you. Having third-party auto liability insurance ensures you don't have to pay out-of-pocket for any damage caused by the collision or the medical expense for anyone you injured, up to the policy limits listed within your commercial auto insurance. Calgary business owners with this type of auto coverage will also be protected against legal expenses and legal action as a result of the incident.

Accident Benefits Coverage

Also considered a type of mandatory insurance coverage for your commercial auto insurance, Calgary businesses with this coverage will ensure that the driver and any passengers in a company vehicle involved in a collision are protected—regardless of who is at fault. In this way, accident benefits differ from third-party liability. It typically covers:

• Medical expenses for treatment due to an injury
• Essential medical supplies
• Essential medical services
• Wage loss coverage

With this addition to commercial car insurance, Calgary businesses don’t have to pay medical bills or associated costs out of pocket in the event of a car accident.

Public Liability and Property Damage Liability/PLPD Coverage

Also known as bodily injury and property damage coverage, in a Calgary commercial auto insurance policy, public liability and property damage insurance (PLPD insurance) protects you should you be the at-fault party in a vehicle accident. Whether you hit another vehicle, a person or an inanimate object like a road sign, if you're at fault for a traffic accident, this makes you liable for any damage caused. 

PLPD insurance is fundamental coverage in all types of policies for personal and commercial auto insurance. Calgary policyholders will find that it can be broken down into two parts:

• Public Liability—which covers injuries you cause to other people.
• Property Damage—which covers damage to personal or public property caused by your vehicle, including vehicle damage to the other car involved in the incident.

Collision Insurance

Unlike third-party liability and accident benefits coverage, collision insurance is not considered a type of mandatory coverage in Alberta. However, if you rely on your vehicle for business reasons, it's imperative that you protect it with both collision insurance and comprehensive insurance—which is detailed below—in your Calgary commercial auto insurance policy.

Collision coverage protects your vehicle from accidents. Typically, mandatory insurance doesn't actually protect your vehicle, but losses or damage to other people, cars and objects, as well as medical expenses for others. Contrarily, collision coverage pays for damage to your vehicle caused by a rollover or collision with another vehicle—even if you're at fault. By having this type of coverage included in commercial auto insurance, Calgary business owners will ensure that should the covered vehicle get damaged in an accident, they won’t pay out-of-pocket for the cost of repairs or replacement.

Comprehensive Insurance

Another type of optional coverage for commercial auto insurance, Calgary businesses with comprehensive insurance will find it essentially protects the vehicle from all manner of risks, including:

• Theft
• Hail
• Vandalism
• Fires
• Animal collisions
• Other non-driving-related damage

If you're using your truck or van for business reasons, like selling coffee or transporting equipment, it can be devastating if you hit a deer or someone steals your vehicle, and you're not covered. However, by having this policy as part of their commercial auto insurance, Calgary business owners will be covered for the cost of repairs or vehicle replacements in the event of a non-collision incident.

Uninsured Automobile Coverage

As much as we'd like to believe that every other driver on the road is responsible, honest, and fully covered with mandatory personal or commercial auto insurance, Calgary residents know that's unfortunately not always the case. 

When you are in a collision where the other driver is at fault, that driver's insurance would typically cover the associated costs of the collision. But if you are involved in a collision with an at-fault driver who is an uninsured driver, under-insured, or who flees the scene of the collision before you can get their information, you won't have access to insurance compensation from the at-fault driver's coverage. In that type of scenario, by having uninsured motorist coverage on their commercial auto insurance, Calgary business owners will have the peace of mind that in the event of an accident where the at-fault party isn’t properly insured, they will be given the insurance compensation they are entitled to, up to the coverage limits on their policy, so they can avoid financial hardship from an accident that wasn't even your fault.

Specified Perils Insurance

As implied by the name, specified perils coverage protects you against specific events (perils) that are outlined in your Calgary commercial auto insurance policy. Typically, this type of Calgary commercial auto insurance coverage will include damage caused by:

• Fire
• Hail
• Lightening
• Theft
• Earthquakes
• Floods
• Other natural disasters

Remember, specific perils insurance only covers you in the event of the listed peril, so if your commercial vehicle was damaged by an event that is not listed under your Calgary commercial auto insurance policy, you will not be covered for repairs or replacement in your commercial car insurance. It's important to carefully read over your Calgary commercial auto insurance policy, so you're familiar with what is covered under specified perils insurance and what is not in case the vehicle you use for business activities is affected. Calgary business owners should speak to our Krywolt insurance brokers if they are concerned about a particular event that they want coverage for.

Loss of Use Insurance/SEF 20

If your vehicle is in an accident or is otherwise damaged, it will need to be repaired promptly. Yet, this may leave you worried that you won't be able to continue your business activities and will experience a loss of income while your car is out of commission. Loss of use insurance, also called SEF 20 on your policy, provides for reasonable expenses incurred for a rental vehicle or other mode of transportation while your vehicle is in the shop.

Essentially, this clause in your Calgary auto insurance sees your insurer provide for you to rent a replacement vehicle similar to the one being repaired up to the coverage limits declared on your policy. However, depending on the type of vehicle that is covered with commercial car insurance, Calgary business owners may not be able to get an adequate replacement. While you get a truck to transport your tools to different job sites, if your truck is in the garage for repair, keep in mind that if your vehicle is specifically tailored to your uses, such as a food truck, replacing your van with a rental may not be feasible.

Rental Vehicle Insurance/SEF 27 or Hired and Non-Owned Auto Coverage

This optional coverage extends the physical damage coverage you already have on your vehicle to a rental vehicle you use while away on business. It's also known as hired and non-owned auto coverage and can be used to cover vehicles your business uses but does not own—like employee-owned vehicles used for business reasons and vehicles leased by your business. The same physical damage deductibles that you have on your current vehicle are reciprocated on the rental vehicle under this type of coverage for commercial auto insurance. 

Calgary business owners and employees who occasionally use personal vehicles for business reasons may want to invest in Hired and Non-Owned Auto Coverage on their commercial vehicle insurance policy. It's important to talk to a qualified insurance agent at Krywolt Insurance so you know whether this add-on is beneficial for your Calgary commercial auto insurance.

Accident Forgiveness Coverage/SEF 39

This Calgary commercial auto insurance endorsement is ideal for protecting drivers from the negative impacts of their first accident. Even if you are a defensive driver and have a clean driving record, sometimes accidents happen. It's with this line of thought that insurance companies developed the accident forgiveness endorsement for personal and commercial auto insurance. Calgary business owners or employees who are in an accident but have this type of insurance coverage will find that this coverage acts as if it never happened in the first place. Basically, it offers a do-over—instead of facing the negative ramifications of being in an accident and watching insurance premiums skyrocket.

Are you still wondering whether these different coverages are needed in your commercial auto insurance? Calgary business owners should give our Krywolt Insurance brokers a call today to discuss different options for their Calgary commercial auto insurance policy and how we can create the perfect policy for their business vehicle needs.

Does Calgary Commercial Auto Insurance Cover Your Employee's Personal Vehicles or Your Own?

If they have commercial auto insurance, Calgary residents should note that it does not provide any coverage for personal vehicles—those would require a personal auto insurance policy. If you supply a company vehicle to your employees, this is a different matter. Also, if you or your employees use personal vehicles for business purposes, you may want to consider adding hired and non-owned auto insurance to your policy.

A policy for commercial auto insurance, Calgary commercial insurance brokers will tell you, is intended for vehicles used for business and commercial purposes. However, if you also use the same vehicle for personal reasons—such as if you work as a handyman and only have one truck—then you may also be covered for personal use. Talk to your Krywolt broker to ensure you have appropriate personal car insurance and/or commercial vehicle insurance coverage based on how you use your business vehicles.

Does My Small Calgary Business Need Commercial Auto Insurance?

Calgary business owners should know that the size of their business doesn't determine their eligibility or need for commercial car insurance. If you operate your business in a way that requires the use of a commercial vehicle, it makes sense to have Calgary commercial auto insurance coverage, and in most cases, it's mandatory to have. 

Suppose you're a business owner and you use a vehicle for business-related purposes. In that case, you will most likely need Calgary commercial auto insurance, especially if your employees also use the vehicle. Say you own a bakery, and you have an employee who delivers cupcakes throughout Calgary. In that case, it's important that your vehicle is fully insured and your employee is listed as one of the vehicle's drivers.

What Types of Vehicles are Covered by Commercial Auto Insurance?

Calgary auto insurance, essentially, covers any vehicle that is used for commercial or business purposes is covered by commercial auto insurance. Calgary vehicles that need this type of insurance coverage include:

• Buses/transport vehicles
• Trucks, including semi-trucks, food trucks, box trucks and pickup trucks
• Vans, including delivery vans
• Taxi and rideshare vehicles
• Service utility vehicles
• Company cars used to visit clients or business locations
• Other business vehicles, such as farming equipment

If there are any questions about whether a vehicle’s use qualifies for commercial auto insurance, Calgary residents should give their trusted Krywolt insurance broker a call.

What's the Difference Between Fleet Insurance and Commercial Auto Insurance?

Calgary residents will find that the biggest difference between these two very similar types of commercial car insurance in Calgary is that commercial vehicle insurance is a policy that offers insurance protection for one single vehicle, while fleet insurance covers five or more commercial vehicles under a single fleet insurance policy. Both Calgary commercial auto insurance and fleet insurance are for vehicles that are owned by companies or self-employed contractors and used for commercial business purposes.

Is Calgary Commercial Auto Insurance and Garage Liability Insurance the Same Thing?

While the names are similar, these two types of insurance coverages are not the same. Garage liability insurance is a type of coverage that is necessary for auto repair shops, auto detailers, parking garages and other types of businesses that must keep customer's vehicles on their commercial property in order to provide their services. It is a type of umbrella liability coverage that applies to litigation and settlement costs related to damage or injury that occurs over the course of daily operations for that business.

Commercial car insurance, Calgary business owners should note, is coverage for your vehicle in the event of an accident, damage, theft, or other loss of use. When it comes to needing commercial auto insurance, Calgary businesses that use vehicles for business use, such as food trucks, transporting services, or ride-shares, will require this insurance policy.

What Isn’t Covered with Commercial Auto Insurance?

Calgary insurance policies can greatly differ, and the level of coverage for commercial auto insurance Calgary businesses have for business vehicles is up to an individual business. While third-party liability and accident benefits insurance are mandatory, most additional coverage options can be added on to provide extra protection for commercial auto insurance. 

Calgary business owners should note that there are a number of potential exclusions that may or may not apply to their particular policy, depending on your insurance company and how your unique policy is written. Some common exclusions for commercial auto insurance policies include:

• Litigation that results from intentional damage or injury
• Damage or injury that results from racing
• Pollution from pollutants that are being transported in your vehicle or that come from the vehicle itself
• Damage resulting from war, insurrection, rebellion, and in some cases, rioting or civil unrest

The best way to establish what level of coverage you need is to talk to one of our qualified insurance brokers. We'll look at what you're using the vehicle for, how many other drivers use the vehicle, and what kind of vehicle you drive to establish what needs to be included in your Calgary commercial auto insurance policy.

Do You Need a Calgary Commercial Auto Insurance Policy?

It can be confusing as to whether or not you need to get commercial car insurance. Calgary business owners who use their vehicle for both commercial and personal reasons: what's important to know is that as soon as you use your personal car for business reasons and get in an accident, you may not be covered—depending on your insurance company. That's why it's essential to check with our trusted Krywolt Insurance experts to see if you need commercial auto insurance. Calgary car owners will quickly find that it’s better to check and get insurance, than don’t and end up on the hook for damages.

Does Calgary Commercial Auto Insurance Cover Theft of Personal Items?

No, Calgary commercial auto insurance does not cover the theft of personal items or business items inside a vehicle. Only items permanently attached to the vehicle and used in its operation will be covered by your commercial auto insurance. Calgary business owners who store items such as tools in their vehicles and have attached equipment such as cranes or hydraulic lifts will need to get these items added to a separate commercial property policy in order to be covered. 

Additionally, personal items should be added to a personal insurance policy, such as home or tenants insurance.

Are There Fees for Cancelling a Calgary Commercial Auto Insurance Policy?

As with most types of insurance, your insurance carrier will typically charge a fee for cancelling Calgary commercial auto insurance coverage before the renewal date. If you cancel at the renewal date, there's no cancellation fee. Therefore, it makes sense to wait until the renewal date if possible. If you're thinking of cancelling your commercial car insurance, Calgary brokers at Krywolt Insurance can help you make sure it's done at the optimal time and that you can smoothly transition to a new insurance provider or a new type of coverage if necessary. Keep in mind that when cancelling a policy for commercial auto insurance, Calgary residents will need the permission of everyone listed as a Named Insured on the policy, and the policy cancellation cannot be backdated.

What Factors Determine Premium Costs for Commercial Auto Insurance Calgary Residents Should Know?

Like any other type of insurance coverage, there is a broad range of factors that go into calculating the cost of premiums for commercial auto insurance. Calgary policies often include considerations such as:

• Your insurance history or claims history
• Your driving record
• The types of coverage you want or need on your policy
• Where you drive, how often, and annual mileage
• The commercial purpose of your vehicle
• The type of vehicle being insured
• The amount of coverage necessary
• Safety and anti-theft features
• Your demographics, such as age

When you call the qualified brokers at Krywolt Insurance, we'll find the best insurance options available for your unique needs at a competitive rate for your commercial auto insurance. Calgary insurance seekers should know that the more information we have about them and their commercial vehicle insurance requirements, the better we're able to seek out the ideal coverage, so you can rest assured that you are protected against financial setbacks in the event of an insured peril with the proper commercial vehicle insurance policy.

What Are the Main Differences between Personal and Commercial Auto Insurance?

Calgary vehicle owners know it is mandatory to have car insurance, but besides the intended use of the vehicle, there are some key differences in terms of coverage for personal and commercial auto insurance Calgary residents should know about. These include:

• Scope: Personal policies generally cover commuting and leisure use, while commercial policies cover a broader range of vehicles and activities, such as a company van to deliver products or a customized food truck from which you can serve fresh food items.
• Coverage Limits: With commercial car insurance, Calgary residents will have higher coverage limits to account for the increased risks associated with business activities that are not associated with personal use.
• Overall Costs: Calgary commercial auto insurance generally costs more than personal auto policies because of the increased liability risks associated with vehicle business use. Even if you drive regularly, as a business, you may be transporting people or products around, and they may be harmed or damaged in an accident or other unforeseen event. Depending on the product, there may be additional costs involved.

Ultimately, a commercial policy needs to cover an increased range of potential risks and liabilities when compared to a personal one. This is why it’s important that when getting commercial auto insurance, Calgary business owners provide as much clarity and detail about their business auto insurance needs when speaking to our commercial insurance brokers, so they may tailor the best possible policy for the commercial vehicle. And of course, you should also be clear when discussing your personal vehicle insurance needs in order to ensure you get comprehensive insurance coverage and the best possible deal.