Transporting equipment in Quebec involves specific insurance considerations that differ from those in other provinces.
Whether you’re a contractor moving machinery between job sites, a business shipping inventory across the province, or a for-hire carrier hauling freight for clients, the right insurance coverage from a trusted insurance broker in Montreal can protect your equipment, your business, and your reputation.
Quebec operates a hybrid insurance model where the Société de l'assurance automobile du Québec (SAAQ) provides public no-fault bodily injury coverage.
At the same time, private insurers handle property damage, cargo protection, and liability coverage, which are integral components of business insurance for companies involved in equipment transport. This unique framework affects the way equipment transport insurance works in the province.
This guide covers every insurance option available for protecting equipment during transport in Quebec, from mandatory liability requirements to specialized floater policies for high-value machinery.
The Key Question: Whose Equipment Are You Moving?
The most important factor in determining what insurance you need is ownership. Different policies apply depending on whether you're transporting your own equipment or hauling someone else's goods for payment.
- Moving YOUR OWN equipment: Requires an Equipment Floater (Inland Marine), such as a contractor hauling an excavator between job sites.
- Transporting OTHERS' equipment for payment: Requires Motor Truck Cargo Insurance, commonly used by trucking companies delivering client machinery.
- Shipping YOUR products via a third-party carrier: Requires Transit Insurance (Goods in Transit) for manufacturers shipping inventory to retailers.
- Arranging transport without operating trucks: Requires Contingent Cargo Insurance for freight brokers coordinating shipments.
- Holding customer equipment temporarily: Requires Bailee's Customer Coverage for businesses like repair shops storing customer machinery.
Option 1: Inland Marine Insurance (Equipment Floaters)
Despite the name, inland marine insurance has nothing to do with boats. This coverage protects property that moves from place to place or is used at various locations. Standard commercial property insurance typically covers items only at a fixed business address, while inland marine insurance fills the gap for mobile equipment.
1. Contractor's Equipment Floater
A contractor's equipment floater provides coverage for tools and machinery that contractors transport between job sites. Unlike standard property insurance, which covers equipment only at a fixed location, this floater follows your equipment wherever it goes: in transit, at job sites, or in temporary storage.
What it covers:
Heavy machinery: bulldozers, excavators, backhoes, loaders, cranes, concrete mixers
Power tools: generators, compressors, pneumatic tools, welders
Hand tools: drills, saws, and other portable equipment
Accessories and attachments: drill bits, saw blades, cables, and spare parts
Covered perils: Typically include theft, vandalism, fire, collision, overturning, and accidental damage. Coverage applies during transit, while in use, at rest, and in temporary storage.
Cost: Equipment floater policies typically start around $750 annually in premium. Insurance companies generally charge approximately 4% of value for miscellaneous tools and smaller equipment (items under $1,500) and approximately 1% of value for scheduled equipment (larger items listed individually by make, model, and serial number).
Best for: Contractors, construction companies, landscapers, electricians, plumbers, HVAC technicians, and any business that regularly moves tools and equipment between work locations.
2. Installation Floater
An installation floater covers equipment and materials from the moment they leave your warehouse until they are fully installed and accepted by the client. This coverage bridges the gap between when you purchase materials and when they become part of a completed project.
Coverage scope:
Materials in transit to the job site
Equipment and materials at the job site before installation
Items during the installation process
Some policies extend to completed installations until client acceptance
Best for: Companies installing high-value items like commercial HVAC systems, custom cabinetry, specialized machinery, generators, or medical equipment. Essential when you are responsible for materials during transportation, unloading, and installation.
3. Bailee's Customer Coverage
A bailee is someone who temporarily holds property belonging to someone else. Bailee's coverage protects your clients' equipment while it is in your care, custody, and control. This applies when you receive customer equipment for repair, service, storage, or any situation where you temporarily possess their property.
Best for: Repair shops, service centres, dry cleaners, storage facilities, and any business that takes temporary possession of customer property, including transporting it to or from service locations.
4. Specialized Equipment Floaters
For high-value or specialized mobile equipment, insurers offer tailored floater policies:
Medical and scientific equipment: Coverage for mobile imaging units, diagnostic equipment, and laboratory instruments that technicians transport to different facilities.
Film and photography equipment: Protection for cameras, lighting, and production gear moving between shoots.
Trade show and exhibition coverage: Covers displays, promotional materials, and product samples during transport, setup, and throughout events.
Fine art and collectibles: Specialized coverage for galleries, museums, and artists moving irreplaceable items.
Option 2: Motor Truck Cargo Insurance
Motor truck cargo insurance protects goods that belong to others while they are in your care, custody, and control during transport. This coverage is essential for for-hire carriers, trucking companies, and logistics providers who transport freight for payment.
1. How Cargo Insurance Works
When you accept freight for delivery, you assume liability for that cargo. If it is damaged, stolen, or lost during transport, you are responsible to the shipper for the value of the goods. Motor truck cargo insurance pays for these losses, protecting your business from potentially devastating claims.
Covered perils typically include:
Collision, overturning, and vehicle accidents
Fire and explosion
Theft (subject to policy conditions)
Loading and unloading accidents
Weather damage during transit
2. Coverage Limits and Requirements
Quebec law does not mandate cargo insurance for all commercial carriers. However, most shippers and freight brokers require carriers to carry cargo coverage before they will tender freight. Standard limits are $100,000 per shipment, though high-value loads may require $250,000 or more.
For carriers entering Canada from the United States, cargo insurance requirements depend on Gross Vehicle Weight.
3. Cargo Insurance Cost
Cargo insurance costs between $500 and $2,000 annually for most Quebec carriers, based on coverage limits, cargo type, and claims history.
Commodity type: Hauling electronics, alcohol, or pharmaceuticals costs more than general freight due to higher theft risk and value.
Coverage limits: Higher limits mean higher premiums. A $100,000 policy costs less than $250,000 coverage.
Loss history: Prior cargo claims increase your premium. A clean claims record helps secure better rates.
4. Contingent Cargo Insurance
Contingent cargo insurance serves as backup coverage when the primary carrier's insurance fails to pay. This protection is essential for freight brokers, logistics companies, and shippers who arrange transportation through third-party carriers.
Contingent coverage applies when the carrier's cargo policy denies a claim due to policy cancellation, insufficient limits, or exclusions. It protects your business when you have arranged transportation, and the carrier's insurance does not respond as expected.
Option 3: Transit Insurance (Goods in Transit)
Transit insurance, also known as goods-in-transit insurance, protects cargo owners against loss or damage during shipping. Unlike motor truck cargo insurance (which protects the carrier), transit insurance protects the owner of the goods being shipped.
1. Single Transit Policy vs. Open Policy
Single Transit Policy: Provides coverage for one specific shipment from origin to destination. This is ideal for businesses with occasional shipping needs or one-time high-value moves. Coverage begins when goods leave the origin and ends upon delivery, making it cost-effective for infrequent shippers.
Open Transit Policy: Provides continuous coverage for multiple shipments over a specified period, typically one year. All shipments are automatically covered under pre-arranged terms and rates. Declarations are made periodically, and premiums for unutilized coverage may be refunded at policy expiry, making it more economical for businesses with frequent shipping needs.
2. Coverage Scope
Transit insurance covers goods during transportation by road, rail, air, or sea. Coverage typically includes protection against:
Fire, explosion, and lightning
Vehicle collision, overturning, or derailment
Theft (with conditions)
Damage during loading and unloading
Natural disasters (depending on policy terms)
Common exclusions:
Wilful misconduct by the insured
Inadequate packaging
Delays in transit
Pre-existing damage
Inherent vice (natural deterioration of perishable goods)
Option 4: Commercial Auto Insurance Coverage
Commercial auto insurance covers the vehicles used to transport equipment. While this coverage does not directly protect cargo or equipment, it is essential for any transport operation and may include some equipment-related protections.
1. Civil Liability Coverage (Q.P.F. No. 1)
Mandatory private insurance covering property damage caused by your vehicle. For heavy vehicles (GVWR of 4,500 kg or more), Quebec requires a minimum of $1,000,000 in liability coverage. Most shippers and brokers require $2,000,000, and cross-border operations to the United States typically require $5,000,000 due to higher legal exposure.
Cost: Liability coverage costs between $4,000 and $8,000 annually for heavy trucks, depending on limits and operating radius.
2. Physical Damage Coverage
Covers your truck and trailer against collision, fire, theft, vandalism, and weather damage. Not legally required but essential for most operators, especially in high-theft areas like Montreal. Typically costs 3% to 5% of your equipment's value annually or $1,500 to $4,000 for most operators.
3. Specialized Endorsements
Reefer Breakdown Coverage: Essential for temperature-sensitive equipment or perishable goods. Standard cargo policies typically exclude spoilage unless you purchase this specific endorsement. Covers the mechanical breakdown of refrigeration units and the resulting cargo loss.
Trailer Interchange Coverage: Covers trailers you operate under a trailer-sharing agreement that you do not own. Essential when using leased or interchanged trailers.
Non-Trucking Liability (Bobtail): Provides coverage when operating your truck without a trailer or outside of dispatch duties. Fills gaps when primary liability may not apply.
Downtime Coverage: Reimburses lost income when your truck is under repair following a covered loss. Helps maintain cash flow during extended repair periods.
MCS-90 Endorsement: Required for operations crossing into the United States. This endorsement meets American federal financial responsibility requirements and must be filed with the FMCSA.
Montreal-Specific Risk Factors
Operating in Montreal introduces specific risks that affect insurance requirements and premiums, including the need to secure cargo from theft, given the city's higher rates of cargo theft.
1. Elevated Theft Risk
Montreal has higher cargo and equipment theft rates than rural Quebec. Insurers often add specific requirements to policies:
Kingpin locks: Required whenever trailers are detached.
Secure yards: Parking loaded trucks overnight in unlit, unfenced lots may void theft coverage.
GPS tracking: Many policies require or offer discounts for GPS-equipped vehicles and trailers.
Unattended vehicle clause: Policies may deny theft claims if equipment is stolen from a truck left running while the driver is away from the vehicle.
2. Traffic Density and Accident Risk
Montreal's dense traffic increases collision risk and drives higher insurance premiums compared to rural operations. Operators based in Montreal typically pay 10% to 20% more for commercial auto coverage than those in less congested areas. Operating primarily within the city, as opposed to long-haul routes, affects your rating classification.
3. PEVL Safety Record Impact
The PEVL (Propriétaire, exploitant et conducteur de véhicules lourds) is Quebec's heavy vehicle safety record maintained by the SAAQ. Insurers heavily weigh your PEVL record when calculating premiums. A clean PEVL record secures standard rates, while a poor record can increase premiums by 20% to 40% or more. A very poor record may make coverage difficult to obtain at any price.
Cost Summary: Equipment Transport Insurance in Quebec
- Equipment Floater: Typical annual cost of $750 – $5,000+, largely determined by equipment value (typically 1–4% of Total Insured Value).
- Motor Truck Cargo: Typical annual cost of $500 – $2,000, influenced by cargo type, coverage limits, and loss history.
- Civil Liability (Heavy Vehicle): Typical annual cost of $4,000 – $8,000, based on coverage limits and operating radius.
- Physical Damage: Typical annual cost of $1,500 – $4,000, generally calculated as 3–5% of the equipment’s value.
- Reefer Breakdown: Typical annual cost of $200 – $800, depending on the unit value and cargo sensitivity.
- Transit Insurance (Open Policy): Typical cost of 0.3% – 1% of shipment value, influenced by the route, cargo type, and mode of transport.
- Quebec Insurance Tax: Fixed at 9% of the premium (increasing to 9.975% starting January 2027), applied to all premiums.
Choosing the Right Coverage
Selecting appropriate insurance depends on your specific operations, equipment value, and risk profile.
1. For Contractors and Business Owners
If you transport your own equipment between job sites, you need an equipment floater (inland marine policy). Standard commercial auto policies only cover your truck, not the generator or machinery on the flatbed. Verify whether your policy covers equipment at actual cash value (depreciated) or replacement cost. Always aim for replacement cost coverage for newer machinery.
2. For-Hire Carriers and Trucking Companies
If you are paid to transport equipment or freight for others, you need motor truck cargo insurance. Most shippers require at least $100,000 in coverage, with higher limits for valuable cargo. Ensure your policy covers loading and unloading, not just transit. If hauling temperature-sensitive items, add reefer breakdown coverage. Additionally, freight insurance is crucial to protect the goods you are transporting, ensuring you're covered for potential damages or losses during the shipping process.
3. For Shippers and Manufacturers
If you ship your products using third-party carriers, consider transit insurance (goods in transit coverage). Carrier liability is often limited and may not cover the full value of your goods. An open transit policy provides automatic coverage for all shipments throughout the year, eliminating the need for separate policies for each shipment.
4. For Freight Brokers and Logistics Companies
If you arrange transportation but do not operate trucks, contingent cargo insurance provides backup protection when carrier insurance fails. This coverage protects your reputation and client relationships when claims arise, and the primary carrier's insurance does not respond.
Pre-Shipment Insurance Checklist
Before your next equipment transport, verify these items:
Valuation clause: Is equipment insured at actual cash value (depreciated) or replacement cost? Replacement cost pays to replace equipment without depreciation deduction.
Coverage territory: Does your policy cover the entire route? Stepping outside your rated territory can void coverage.
Loading/unloading coverage: Most accidents occur during loading and unloading. Confirm your policy explicitly covers these operations.
Co-insurance compliance: If you insure a $100,000 excavator for only $50,000 to save premium, the insurer may pay only 50% of any loss. Declare full values.
Cross-border filings: If transporting to the United States, verify the MCS-90 endorsement is in place.
Security requirements: Review policy conditions for theft coverage, including parking requirements and anti-theft device requirements.
Why Choose Qubit Insurance
Qubit Insurance is an AMF-licensed brokerage in Montreal specializing in equipment and commercial transportation insurance for Quebec operators. As an independent broker, we work for you by comparing coverage across multiple carriers to secure the best protection at competitive rates.
1. Specialized Transportation Expertise
We understand the specific insurance needs of contractors, trucking companies, and businesses that move equipment. Our team handles SAAQ, CTQ, and MCS-90 requirements, ensuring your coverage meets regulatory standards and shipper requirements for both domestic and cross-border operations.
2. Access to Multiple Insurance Markets
As an independent brokerage, we maintain relationships with standard and specialty carriers serving the Quebec market. This access allows us to find coverage for a wide range of risk profiles, including difficult-to-place accounts that direct insurers may decline.
3. Claims Advocacy and Support
When equipment is damaged or cargo is lost, we advocate on your behalf with insurers. Our bilingual team provides direct access to local adjusters and helps expedite claims resolution so you can get back on the road faster.
4. Montreal and Quebec Market Knowledge
We understand Montreal's specific risk factors, from elevated theft rates to traffic patterns. Our recommendations account for local conditions that affect both coverage needs and pricing.
Contact Qubit Insurance today for a comprehensive review of your equipment transport insurance needs. We will help you identify gaps in coverage and find the right protection for your specific operations.
