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Lyndon Block

The Chronicles of Commercial Auto Insurance – Part 2

On the last article, we discussed how to get your power units and trailers registered with SGI and IRP along with the requirements held by the NSC and Highway Traffic Board. Now that your vehicles are registered, we can discuss on how to properly insure them.

Many commercial vehicles are required to carry a minimum 1,000,000 liability. However, it is not mandatory for all business types. Regardless, we recommend you carry an extension auto liability policy on all your vehicles, whether they are personal or used for business. This is to protect your family and your business from the types of losses that can ruin you financially. The rating on liability is based on the type of risk. If you are a contractor, taxi, ambulance or commercial trucker, your rate will be based on your type of operation.

Liability coverage is the main concern on every policy as this is where the larger losses and claims generally occur. However, there are other damages to your vehicle that can be financially painful as well. You can add endorsements onto your auto policy to protect these types of losses. They include:

  • Wildlife deductible waiver
  • Reduced Deductible (All Perils)
  • Road Hazard Glass
  • Loss of Use
  • Replacement Cost Coverage
  • Excess Value
  • Environmental Liability
  • Family Security

Wildlife Deductible Waiver

If you have this waiver added onto your commercial auto policy, and you suffer damage to your vehicle by a wild animal (Bird, Deer, Moose, etc.), you will not have to pay your deductible to have the damage repaired.

Reduced Deductible (All Perils)

With your commercial auto policy, you have the option to reduce your deductible from your standard deductible on your registration given to you by SGI or the IRP. Choose a deductible that you will be comfortable with in the event of a loss.

Road Hazard Glass

If you have an expensive windshield or other windows in your vehicle, you may want to add this coverage onto your policy in case you suffer damage to your glass caused by debris or rocks on the road. Depending on the deductible you choose, bruises can be fixed for free and if the windshield needs to be replaced, you pay your glass deductible and get a new windshield.

Loss of Use

This endorsement allows you to rent a vehicle of similar nature, if your vehicle is unusable during a claim. This coverage is not available for taxis, funeral vehicles, driver trainers and U-drives. Coverage does not respond to mechanical failure. The table of coverage is below:

screenshot-2018-03-12-17-10-11

Replacement Cost Coverage

If you have purchased a new vehicle (cars, suvs, vans and trucks – one ton and less), you will want to purchase this coverage. You have 120 days from the date of purchase to add this coverage onto your vehicle. Coverage runs for a duration of 36 months from that date. What this coverage does is eliminate the depreciation of your vehicle in the event of a total or partial loss. Please give us a call if you would like more information on this coverage.

Excess Value

With large commercial vehicles, SGI will limit the amount of coverage given on your registration. You can add the coverage onto your registration or you can add that value here on your commercial auto policy under the “excess value” endorsement. Every year, you are required to submit an updated list of drivers and vehicles for your commercial auto policy, so we recommend you carry the excess value on the policy so we can review this value annually. What this coverage does is make sure your vehicle is insured for the appropriate value. If your power unit is covered for $15,000 on the registration, but is worth $75,000. You should add the additional $60,000 onto this commercial policy to make sure you are adequately insured. Just remember that if you unlicense your truck to put it in storage, you are removing that $15,000 amount of coverage, so be sure to bump up the value on your commercial auto policy at that time.

Environmental Liability

Where environmentally sensitive commodities are hauled (petroleum, industrial or chemical waste, etc.), the insurance provider may add this endorsement onto your policy which could result in an additional premium to offset the added exposure.

Family Security

Family Security coverage applies when you are involved in an accident with an underinsured or uninsured motorist. If the person who is responsible for the claim does not carry adequate insurance coverage, this endorsement steps up and covers the costs incurred for injuries and damages to the people in your vehicle. Where the coverage is available, Family Security protection will match the third party liability limit to a maximum of $2,000,000. 

Commercial Auto policies are quite complicated and require constant attention. Whether it is keeping your vehicle list or driver list updated, or making sure the liability coverage is accurate to your business operation, there will consistently be changes and updates. We are here to help you every step of the way. Please give us a call if you have any questions regarding your commercial auto insurance policy or if you would like more information. 

The Chronicles of Commercial Auto Insurance – Part 1

There are many truckers on the road each day. They all have a different destinations, objectives, commodities and drivers. There are many variables when it comes to commercial hauling and we want to let you know what needs to be looked at when insuring your rig and your fleet.

So what do I need to know when registering my commercial truck and trailers?

  • First, you need to license your vehicles. The way your truck is licensed depends on the commodities you haul and the weight of your load. If you haul a B-Train of Grain or you deliver fuel to stations, this will change the classification of your truck. The total weight of your truck, trailer and load (combined) will be required when registering and that weight will need to be added onto the truck portion of the registration.
  • How much weight you are qualified to haul will depend on the trailers you have, the tire size as well as the axel spread of both your truck and your trailers. So you will need to do some research before you come in to register your unit.  
  • With this information, along with a bill of sale, we can set up your vehicle registrations. However, if your truck is hauling out of province, there will be additional requirements that will need to be met, this is handled by the IRP department.
  • The IRP department has an approval process that you will need to follow. This requires a list of vehicles, drivers, commodities, weights, jurisdictions and mileage in those jurisdictions. They will want to know experience of the company and drivers and any details related to the operation. Once approved, you can submit your vehicles in for a quote request. This rate is based on the amount of mileage in all jurisdictions, the risk and weight of the load, and the claims experience of the company/drivers. We can help you through this process and make sure your vehicles are properly registered.
  • Three specific requirements that a carrier needs to adhere to under the IRP is:
    • Maintain an established place of business
    • Distance accrued by the fleet
    • Keeping maintenance and operational records available
  • Once you have registered your vehicle with SGI and/or the IRP department, we can work on the commercial auto insurance policy.

What is the minimum mandatory insurance I need to start hauling?

  • The NSC (National Safety Code) is a code of minimum performance standards for the safe operation of commercial vehicles for all jurisdictions in Canada. According to the NSC, all individuals holding a Certificate of Safety Fitness are required to maintain extension insurance.

Insurance Requirements NSC Block's Agenies

Minimum Insurance Coverage

Third Party Liability

  • $1,000,000 – All carriers transporting freight except dangerous goods
  • $2,000,000 – All carriers transporting dangerous goods

Buses

  • Passenger Capacity (15 or less) – $1,000,000
  • Passenger Capacity (16 or more) – $3,000,000

This is the basic information to get your commercial auto on the road. There is many more coverages that may be required by the NSC or coverages you may desire to make sure you have the best coverage available. We will touch on the extension auto policy in the next “Chronicle of Commercial Auto Insurance.”

What do I need to know about Commercial Auto Insurance?

The days of horse and buggy are unfortunately, behind us, and traffic is moving faster than ever. We have ships, trains, planes, and trucks delivering goods all over the world every minute of every day. The world seems to be getting smaller and smaller, especially with our abilities to order from websites like Amazon and Ebay; who ship their products right to our door.

With all the vehicles on the road, there are many different types of businesses that are travelling daily. If you are a commercial carrier, or you are running your own business there is a good chance you will need a commercial auto policy for your protection. We recommend that everyone carry a personal auto pak for their privately owned vehicles, therefore, we recommend it for your commercial vehicles as well. In some instances, the highway traffic board makes it mandatory that you carry a minimum 1 million or 2 million liability for your commercial vehicles.

Whether you are a contractor, delivery service, salesman (hauling own goods), concrete hauler, oil field worker, taxi or limo service, food truck, tow truck, garbage truck, hot shot operation, commodities hauler (gravel, grain, livestock, etc), logging truck or snow removal service; you will be at risk of an auto claim. There are tons of operations that all require a commercial auto policy on their vehicles. This policy is required for both the trucks and the trailers. If you are unsure about whether your operation is required to carry additional liability coverage, please contact our office.

What you are hauling or what your operation is, will decide the premium rating for your vehicle. That is why it is important to give us as much detail as possible so we insure your vehicles with accurate coverage. For example if you haul “Anhydrous Ammonia” or other chemicals, your liability costs will be greater than someone hauling “blankets and pillows” or if you are hauling your “own” metal products or you are custom hauling metal products for someone else’s business – these small differences change the rating factor.  

Along with insuring your vehicle for physical damage and liability, you may want to consider insuring your cargo. If you are hauling goods of others, you may be required to have a cargo policy by the highway traffic board. Please contact us to find out what is required, and if you are responsible for the load you are hauling. You don’t want to have an accident and realize you are responsible for the damages to the load you were hauling.

We will touch on more individualized operations in our upcoming blogs to give you an idea of what to look for in specific fields. In the meantime, please contact us if you need to set up commercial auto insurance on your business vehicles. We can set up a policy to give you that peace of mind you’ll need when on the road.

How can Service Line coverage benefit you?


When is the last time you tried digging a hole? Like a decent sized hole. Probably when you were a young kid. You’d start with a small little hole to dump some rocks or something into it or something and then gradually increase the size of it. Then when you got to the two foot mark, you realized that this ground is fairly solid and difficult to dig as it becomes quite compact. I do not know what that story has to do with this blog, but bare with me.

There is a new product called ‘Service Line Coverage.’ This coverage is now available with most insurance carriers. It is in place to cover a few things you wouldn’t normally think about. Did you know that from the property line to your dwelling, everything above and below ground is your responsibility? That’s where this product steps into action.

With all the water, sewer, power, and phone lines now running underground, there is the potential for those lines to break under pressure. The cost to dig these lines up and repair the broken line is covered under this coverage.

Over time, people build decks, patios, driveways, underground sprinklers, and fences to complete their yard. Usually people don’t even check where these lines are running before they build these items. This can cause a huge problem when one of those lines break and now you have to jackhammer out a patio or tear out a deck to get to the broken line. This coverage would apply to cover these landscaping costs as well.

There is $10,000 coverage currently available. It is fairly inexpensive as well, with the premium coming in around $3.50 per month ($40 per year). If this is something you would be interested in, please contact our office. SGI Canada has some additional information about the coverage here on their website as well.

Our goal at Block’s Agencies is to provide you with proper, effective coverage for what your needs are. Every person’s needs are different, so please contact us to review your policy and to have a conversation about what your main concerns are so we can design a policy that will meet your needs. We have an excellent staff that can help you get a policy designed specifically for you and can enlighten you on situations that can arise from experiences we have seen in our industry. We value our relationships with our clients greatly, and our number one goal is to make sure you’re looked after the best way possible. After all, insurance is only as good as the coverage you have when a claim arises. So let us help you.

Protect the expensive equipment in your house.

We are in an era where almost everything has some kind of mechanics or technology in it. Even some surfboards now come with a motor (I think that is kind of missing the point on “catching a wave”). There is more technology in your smart-watch then there was in most computers 5 years ago. It is crazy how rapidly things are evolving. This is also happening in your house more and more. These “Smart Homes” come with automated blinds & lights, Smart TV’s, Nest Thermostats, etc.

With all this technology and equipment in your house, you need to make sure you have done your best to properly insure this equipment in case something awful happens. Most insurance policies include coverage for the major disasters: Fire, Theft, Hail, Wind, Smoke, etc, however, they exclude mechanical failure. So if your furnace suddenly decides it no longer wants to live, you would be responsible to repair/replace it unless you had some kind of warranty in place.

Well now there is an insurance product available that fills this hole. No warranty on your furnace or water heater anymore? No problem. Most insurance companies now offer a coverage called “Home Systems Protection” or “Equipment Breakdown” coverage. These coverages offer protection to any sudden and accidental loss to mechanical and electrical components and appliances in your house. There is not an age restriction on your appliances for this to apply. Items that would be covered include:

  • boilers, furnaces and heat pumps
  • hot water heaters and radiant floor heating
  • central air conditioning
  • water purification and filtration
  • ventilating systems
  • well pumps, installed sump pumps
  • home security monitoring and control devices
  • pool, spa or sauna equipment
  • electrical service panels
  • solar/wind/geothermal heating or energy
  • kitchen and laundry appliances
  • home entertainment equipment
  • computers and wireless devices
  • power tools and shop equipment
  • portable generators and sump pumps
  • … and more

This coverage is fairly inexpensive and can potentially save you a ton of money if something goes wrong with your equipment in your house. Please contact our office if you want to know more about this coverage or would be interested in purchasing it. We would love to help you out!

Here is some information to make sure our children are properly secured in their car seats.

As a parent, there is nothing more frustrating than trying to put your child into a car seat while they are kicking and screaming. Especially when it is -40’C outside – that is just an added bonus. Even though we are at our wits’ end, we need to keep a cool head and make sure our kids are buckled up correctly. Here is some information to make sure you are properly securing your child.

Make sure you follow the manufacturers guidelines of the car seat. The guidelines will tell you:

  • If the seat is the right size for your child
  • How to correctly position the car seat into your vehicle
  • Any equipment you may need
  • Directions on how to properly install

Rear facing stage is the safest position for your child. It is recommended that the child stay rear-facing for as long as they possibly can. While the child is in the Infant stage (4-35lbs):

  • Car seat faces rear
  • Harness straps snug – 1 finger slides between strap and child’s collarbone
  • Chest clip at level of armpit
  • Seat handle in the position required by manufacturer while in the vehicle
  • Baby’s head is at least 1 inch below top of the seat

Children can be switched to forward-facing once they are at least 1 year of age, they weigh 20-65 lbs and they can walk unassisted. There is no rush switching your kid to forward facing. If your car seat allows them to stay rear-facing for longer, you can leave them rear-facing. Again, this is the safer position.

Some things to avoid when installing your seat and buckling up your child:

  • Wrapping your baby in a blanket or leaving a snowsuit on your child before securing the straps. Instead, put the straps on the child and cover the baby with blankets.
  • Installing the infant car seat completely upright. Adjust the car seat angle with an approved pad to make sure the angle is correct for the car seat to avoid the child’s head from flopping forward.
  • Using unapproved or expired car seats or household boosters as they are not designed for transportation purposes.

If you need a visual aid, here is a video to explain and demonstrate proper installation. There are also car seat clinics that happen year round. Check here to see where the next clinic locations will be. You can also book an appointment with a car seat technician to have someone show you proper installation. Here are some contacts.

We live in a busy world, and we are always in a hurry. Let’s make sure we take extra time to make sure our kids are safe and secure before we drive. Taking that additional time might mean everything if an accident occurs. We want everyone to be as prepared as possible and to stay safe.