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When Do You Need Business Car Insurance In Manitoba?

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August 8, 2022


You may be considering getting a vehicle for your business or already have a vehicle you’re now wanting to use for business purposes and are wondering, “when do you need business car insurance in Manitoba?”

If you’re using your vehicle for work purposes outside of just getting to and from work, you probably need additional insurance on top of your personal vehicle policy. By not having the proper insurance, you run the risk of having a future claim denied.

In this post, we break down all the reasons you may want to up your car insurance policy. Make sure you have the right coverage so you can rest easy knowing you, your car, and your business are properly protected!

Want to skip the reading and get a quote? Contact us today!

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Personal Vs Business Car Insurance

Business and personal auto insurance are similar in the way they provide protection. They both would give you and your vehicle financial shielding if anything were to go wrong. 

However, it’s important to note that personal car insurance will not cover you if your vehicle is used for business purposes, and business car insurance– or commercial vehicle insurance– will not cover you if it is used for personal use. In other words, you must get additional vehicle coverage if you need to use your vehicle for business purposes. 

Suppose you got into an accident and your insurance company discovered that your vehicle was being used for business purposes (even if not at the time of the accident), and you only had a personal auto insurance policy. In that case, there is a likely chance that the claim would not be processed. 

By not having the proper insurance you’re putting yourself, your finances, and your business at risk. So, what might seem like a way to save some cash, may end up costing you thousands! Ouch!

At What Point Do You Need Business Car Insurance?

If your car is helping/is vital for you to gain income (carrier business, uber driver, mobile vet) you need additional coverage. A good rule of thumb is if you’re using your car for business beyond driving to and from work, you probably need business car insurance. This is true regardless of whether you are a business owner or a sole proprietor. It’s needed for company-specific vehicles as well as personal vehicles that are also being used for your business. 

If you’re unsure if you need business car insurance, the best thing you can do is talk to an Insurance Consultant! They will be able to help you make sure you have the right coverage for what you need.

What Types Of Business Car Insurance Can You Buy?

Much like personal car insurance, there are many different options when it comes to picking a policy that is right for you. One of the main things that should be considered when choosing a business car insurance policy is what type of business the vehicle is being used for. We’ve outlined a few typical business vehicle types below:

A common carrier passenger vehicle (local) is used by a courier or common carrier within a city or municipality. This vehicle is used for any delivery purposes in connection with a business, trade or occupation for more than four days in one month or more than 1,609 km during an annual registration period. These vehicles require a business car insurance policy.

A Passenger Vehicle for Hire is a vehicle used for ride-sharing, such as Uber/Lyft. For these types of business vehicles, various time bands are available depending on your needs and the approximate times and days you plan on running your shared-ride service.

Trucks that are hauling business equipment with a gross vehicle weight of over 4500 kgs may require a Special Risk Extension policy to cover all perils and third-party liability.  $1M, $2M. $5M and even $10M are available.  

These trucks are regulated under Transportation services and will require a valid Safety Fitness Certificate issued by the Transportation Services. Depending on the weight of trucks and the policies needed, getting this could take anywhere from one day to one week.

There are different coverage options, and finding the right policy depends on the nature of the business type and use of the vehicle. Tools and equipment owned by the company are usually covered under a Commercial General Liability insurance policy, with liability coverage options of $1, $2 and $5 million available.

How Do You Get Business Car Insurance?

Whether you’re looking for personal auto insurance or business car insurance, the process is the same (come in and see one of our Insurance Consultants for assistance!). If additional coverage is needed, we’ll also put you in touch with one of our Business Insurance Advisors so they can ensure you have the additional coverage you need to protect you and your business. Remember,  if you’re doing any business outside of Manitoba, special licenses/permits are required. 

On a Commercial General Liability policy, there are options to purchase coverage for any stock and Equipment in transit. Installation floaters are also available. Reach out to one of our Business Insurance Advisors for more information!

Make Sure You’re Prepared!

The best way to make the insurance process as smooth as possible is to have your documents ready to go– don’t worry, though, if you’re missing one or need help finding it– we are here to help! 

Documents required to get the coverage you need may consist of:

  • A Bill of Sale
  • A Certificate of Inspection (safety)– required for vehicles over the Gross Vehicle Weight of 4500 kgs
  • A Transfer of Ownership document
  • A NVIS form if the vehicle is brand new

It’s important every area of your business is protected, not just your car. That’s why we’re here to make sure you’re covered from every angle, so you are prepared if anything were to go wrong. Check out our post on Getting Insurance for your Small Business to learn more about what other coverage you may need so you can focus on being a pro at your business and we can take care of the not-so-fun stuff. 😉 

Business Car Insurance FAQs

You got a business to run, and we’ve got answers to help you run (or drive) it safely! 

If you’re a small business owner who uses their vehicle for their business needs, you can usually consider the additional insurance a business expense, meaning it would be tax-deductible. We love saving $$!

As you can probably guess, driving a vehicle for business purposes is riskier than just driving it for personal use, meaning there are a few extra costs involved.


It’s important to note that numerous factors go into getting you a quote for business car insurance. Things like the type of vehicle, its age, the type of business it’s being used for, the number of drivers, and who the drivers are (age, vehicle history) can all impact how much this will run you.


If you’re interested in starting the process to figure out how much this could cost, click here to get a quote from us today. 

Make Sure You've Got The Coverage You Need!

It’s important you have the right car insurance, especially when not having it runs you the risk of paying out of pocket if an accident were to occur.

The coverage you need will change depending on your car, business, and vehicle use. That’s why we recommend contacting one of our Insurance Consultants today to get a quote that is best suited for your needs.