Commercial Insurance Part 1: Automobile Insurance


Did you know that Costen Insurance offers more than just auto, property, recreational and travel insurance?  In addition to the personal lines products that we offer, we have markets that can accommodate small to large commercial operations including: liability, auto, property, special events, and more.


Commercial automobile insurance policies provide coverage for individuals or businesses who are using their vehicles in a commercial capacity.  Some of the most common types of commercial vehicles that we insure include:

  • Artisan
  • Construction
  • Delivery
  • Farm
  • Service
  • Long-haul trucking
  • Courier
  • Garage Auto


In Part 1 of our three-part post, we would like to share some information on what is typically included in a Commercial Automobile policy. Most Commercial Automobile policies offer similar coverage to a standard personal automobile policy, so we thought it would be helpful to breakdown the different areas of coverage that are available.

Section A- Third Party Liability

  • Covers bodily injury or death to any person, or damage to property of another party
  • Provided for the Insured as well as every other person who personally drives the automobile or personally operates any part of the vehicle with the Insured’s consent

Section B – Accident Benefits

  • Medical payments
  • Death, grief counseling, funeral and total disability benefits
  • Supplemented benefits respecting accidents occurring outside of Alberta
  • Uninsured motorists coverage

Please note that Section A and Section B are combined coverage and cannot be deleted or added independently of each other.

Section C – Loss Of or Damage To Insured Automobile

  • All Perils:  Insures loss or damage to insured automobile from all perils (subject to policy exclusions)
  • Collision or Upset:  Insures loss or damage to insured automobiles caused by collision with another object or by upset (includes coverage for a hit & run on your vehicle)
  • Comprehensive:  Insures loss or damage to insured automobiles from perils other than by collision with another object or upset
  • Specified Perils:   Insures loss or damage to insured automobiles caused by fire, lightning, theft or attempt thereat, windstorm, earthquake, hail, explosion, riot or civil commotion, falling or faced landing of aircraft or of parts thereof, rising water, or the stranding, sinking, burning, derailment or collision of any conveyance in or upon which the automobile is being transported on land or water.

Deductible Clause

  • Each occurrence causing loss or damage covered under Section C is considered a separate claim, and the Insurer’s liability is limited to the amount of the loss or damage less the deductible amount. In simple terms, the deductible is the amount that you pay in the event of a claim and the insurer will cover the damage over and above your deductible amount.

Family Protection Endorsement (S.E.F. 44)

  • Provides limited protection to the Insured, his/her spouse and certain relatives in the event bodily injuries are caused by another motorist who has less Third Party Liability Insurance than the Insured – or none at all.


Additional endorsements such as the SEF 39 (Accident Rating Waiver) and SEF 20 (Loss of Use) should also be considered, where applicable.


When insuring a commercial vehicle, there are several factors that will impact the coverage, deductibles, and premiums that you pay.  As your Broker, we will collect information on the following:

  • The type of vehicle (including year, make and model)
  • The value of the vehicle
  • The radius of operation
  • The use of the vehicle and/or occupation of the vehicle owner (this determines the class of commercial)
  • The type of material, tools and/or equipment carried in the vehicle
    • Note: when tools and/or equipment are carried in a vehicle, it is deemed to be commercial use and would NOT be covered under a personal automobile policy
    • Note: the tools and/or equipment carried are NOT covered under the commercial automobile policy.  A separate commercial property policy is recommended
  • The equipment mounted on the vehicle
    • Note: any mounted equipment would is NOT covered for physical damage or liability related to its use. A separate commercial property policy is recommended.
  • The details (names, dates of birth, driving and licence history) of all vehicle operators


Some types of commercial risks can be quoted through our quoting software, and other more complex types may need to be referred to the insurance company for underwriting. Once a quote is provided and accepted, a Commercial Automobile Application and a Commercial Vehicle Supplement are completed.


If you are interested in obtaining a quote on your commercial automobile insurance,please contact our Office and one of our experienced Commercial Brokers would be happy to assist you!  Alternatively, please visit our website to submit your information online.


Hopefully you have found this summary of coverage helpful, and as always, please do not hesitate to contact our Office with  any questions you may have.


Thank you,
The Costen Insurance Team