Commercial auto insurance in Ottawa: when your vehicle is used for work

Part of the series: Business insurance in Ottawa →

If you use a vehicle to get to job sites, carry tools, deliver goods or drive clients, your insurer needs to know. The right coverage depends on how the vehicle is used, who drives it, what it carries and who owns it.

Signs you may need commercial auto insurance

• The vehicle is owned or leased by your business
• It carries tools, equipment, goods or business signage
• Several employees drive it
• It’s used for deliveries, hauling or carrying paying passengers
• It’s a heavier truck or has been modified with racks, shelving or equipment

Occasional business use of a personal vehicle, like driving to meetings, may be fine on a personal policy if your insurer knows about it. Regular deliveries, ride-sharing and carrying goods for pay usually need a specific endorsement or commercial coverage. Insurers differ, so ask before you start.

What’s included, and the limits businesses carry

Commercial auto policies in Ontario include the same mandatory coverages as personal policies: third-party liability, accident benefits, direct compensation for property damage and uninsured automobile coverage. Collision and comprehensive are optional.

• Liability limits: Ontario’s legal minimum for third-party liability is $200,000. Many businesses carry $1 million or $2 million, and contracts often require $2 million for vehicles used on the job.
• Accident benefits changed on July 1, 2026: for policies entered into on or after that date, medical, rehabilitation and attendant care benefits remain mandatory, but income replacement, caregiver, housekeeping and several other benefits are optional. Think about what you and your drivers would need if you couldn’t work after a crash.

Source: FSRA, customizing liability and accident benefits

Coverage businesses often forget

• Non-owned auto liability: protects your business if an employee has a crash while driving their own car, or a rental, for work. The employee’s personal policy responds first, but your business can still be sued.
• Rented or borrowed vehicles: ask how damage to vehicles you rent or borrow for business is covered.
• Tools and equipment in the vehicle: usually not covered by the auto policy. You need a tools and equipment floater. See the contractor guide.
• Cargo: goods you carry for customers may need motor truck cargo coverage.
• Upfits and signage: declare racks, shelving, ladder racks, wraps and other equipment added to the vehicle so they’re included in its value.

Tips for Ottawa businesses

• Keep your driver list current, and check each driver’s record before they drive for you. New or inexperienced drivers affect the price and the insurer’s acceptance.
• Tell your broker before you add a vehicle or start using one for work, not after.
• If your vehicles regularly work in Gatineau or elsewhere in Quebec, let your broker know so the policy reflects where they’re used.
• Ask about discounts that may apply to your vehicles, such as winter tires, telematics or dash cameras. Availability varies by insurer and vehicle type.

This guide is general information, not legal or insurance advice. Coverage depends on each insurer’s policy wording, including exclusions, conditions, limits and deductibles. Requirements from the City of Ottawa, WSIB and other sources were checked in September 2026 and can change, so always confirm the requirement in your own contract, lease or permit.