When trucking companies shop for commercial transport insurance, they have clear expectations. They need coverage that protects their trucks, cargo, drivers, and overall operations from the risks they face every day.
Whether a company operates within Montreal, runs routes to Toronto and the GTA, or crosses into the United States, the insurance must be effective in every place they does business. The wrong policy can leave gaps that result in thousands of dollars in costs when an incident occurs.
As an AMF-certified insurance broker in Montreal, Qubit Insurance helps trucking companies across Quebec understand their coverage options and choose protection that truly aligns with their operations. We know what carriers need and make the process simple.
This guide explains the key things trucking companies should look for when choosing commercial motor insurance so you can avoid costly mistakes and get the right coverage from the start.
1. Adequate Liability Coverage Limits
Why Legal Minimums Are Not Enough
Every province in Canada requires trucking companies to carry a certain amount of liability coverage. In Quebec, a passenger car only needs $50,000, but heavy vehicles must follow much stricter rules.
If your truck has a GVWR of 4,500 kg or more, the law requires at least $1,000,000 in civil liability coverage. If you haul dangerous goods, the minimum increases to $2,000,000.
Even if your commercial vehicles fall between 3,000 kg and 4,500 kg, the legal minimum is rarely enough to protect your business. A serious accident can easily lead to claims worth millions of dollars. This is why many trucking companies choose between $2 million and $5 million in liability coverage, especially when they operate in Ontario or the United States where claim costs are higher.
What Shippers Expect From You
Liability coverage is not only about meeting legal requirements. Your customers also expect certain limits before they trust you with their freight.
Many shippers and freight brokers require $1 million or $2 million in liability coverage before allowing you to move their load. If your insurance does not meet their requirements, you will lose the opportunity.
This is why choosing the right liability limit is so important. A good insurance broker explains what different shippers expect and helps you choose limits that support the work you want to accept.
Coverage That Works in All Operating Territories
Most trucking companies do not operate in just one area. You may run loads within Montreal, take routes to Toronto and the GTA, move freight across Ontario, or cross the border into the United States. Your insurance must work properly in each of these locations.
Each place has its own insurance rules: • In Quebec, the SAAQ covers bodily injuries and private insurance handles property damage and civil liability. • Ontario has different requirements, including specific accident benefits coverage. • US operations add federal FMCSA requirements.
This is why trucking companies choose brokers who understand these differences and can set up truck insurance coverage that protects you everywhere you operate.
2. Physical Damage Protection for Trucks
Collision Coverage for Accident Damage
Commercial trucks are a major investment. A single tractor can cost $150,000 or more, so physical damage coverage is important to protect that investment.
Collision coverage pays for damage when a truck hits another vehicle, strikes an object, or rolls over. Without this coverage, the trucking company is responsible for all repair or replacement costs after an accident.
Comprehensive Coverage for Non-Collision Losses
Comprehensive coverage protects trucks from losses that are not caused by a collision. This includes fire, theft, vandalism, hail, and floods. It also covers animal strikes, which are common on Canadian routes, such as collisions with moose or deer.
Theft is also a real concern for trucking companies. Trucks parked overnight or equipment left unattended can be targeted. Comprehensive coverage helps companies recover from these losses without putting stress on their cash reserves.
Agreed Value vs. Actual Cash Value
When choosing physical damage coverage, trucking companies decide between agreed value and actual cash value.
Actual Cash Value (ACV) pays what the truck is worth at the time of the loss, minus depreciation. For example, a truck purchased for $180,000 may only be worth $120,000 after several years. ACV pays based on that current value.
Agreed Value is different. It pays a set amount that the company and insurer agree on when the policy begins. If the truck is totaled, that agreed amount is paid in full, regardless of depreciation. This provides more financial certainty.
3. Cargo Insurance to Protect Freight
Coverage for Goods in Transit
Cargo insurance is essential for trucking companies that carry goods for customers. It protects the freight from damage, theft, or loss while it is being transported. Most shippers require carriers to have cargo insurance before they will trust them with their goods.
Specialized Cargo Coverage
Standard cargo insurance does not cover every situation, so some loads need additional protection. For example, Reefer Breakdown coverage pays when freight spoils because the cooling system stops working, which is important for food haulers. Carriers that move dangerous goods also need coverage that follows strict safety rules and Transportation of Dangerous Goods (TDG) guidelines.
Adequate Cargo Limits
Trucking companies want cargo limits that match the value of what they transport. Underinsured cargo is a serious risk. If a load worth $500,000 is damaged but the policy only covers $100,000, the trucking company must pay the difference.
4. Cross-Border Coverage for US Operations
Insurance That Works in the United States
For Quebec and Ontario carriers, Montreal is a major gateway for goods moving to the US. Operating in the United States requires insurance that meets American federal rules. The coverage must include liability limits that are often higher than Canadian requirements, commonly starting at $2 million USD or more.
MCS-90 Endorsement Requirement
Any trucking company operating in the United States needs the MCS 90 endorsement on their liability policy. The MCS 90 is not separate insurance. It is an endorsement that confirms to federal regulators (FMCSA) that the carrier meets financial responsibility requirements. Without it, a company cannot legally operate as a motor carrier in the US.
US Customs Bonds and UIIA
Cross-border carriers often need additional documents beyond standard insurance. This can include US Customs Bonds for hauling in bond cargo. Carriers that move containers from ports, such as Montreal, or from rail yards may also need coverage that meets strict UIIA (Uniform Intermodal Interchange and Facilities Access Agreement) requirements. Many trucking companies prefer working with brokers who can arrange these alongside their main policy to simplify operations.
5. Coverage for Different Operating Situations
Non-Trucking Liability vs. Bobtail Coverage
Many trucking companies work with owner-operators or have drivers who sometimes operate without a trailer. Understanding the difference between Bobtail and Non-Trucking Liability (NTL) coverage is important to avoid uninsured claims.
Bobtail coverage applies when a truck is being driven without a trailer for business purposes. This includes situations like returning from a delivery. It covers the truck while it is under dispatch or in business transit, and is mainly used to protect companies during deadhead or transit miles.
Non-Trucking Liability (NTL) coverage is different. It applies when the truck is being driven for personal use and not for business. It does not cover any use connected to company operations. This coverage is active only when the driver is off duty and not under dispatch, and is mainly used to protect owner-operators when they are off the clock.
Trailer Interchange Coverage (Q.E.F. No. 27)
Standard physical damage insurance covers a company’s own trailers but usually excludes trailers owned by others. Trailer Interchange coverage fills this gap by protecting non-owned trailers that are in the company’s possession under an interchange agreement.
In Quebec, this is handled through the Q.E.F. No. 27 endorsement (Civil Liability for Damage to Non-Owned Automobiles). Working with a broker who understands this endorsement ensures the company is properly protected for this common logistics practice.
6. Business Protection Coverage
General Liability for Operations
Beyond auto liability, trucking companies also need general liability coverage for their overall business operations. This protects the company against incidents that happen outside of vehicle accidents, such as slips and falls at the yard or damage caused during loading or unloading.
Downtime and Business Interruption
A truck that sits off the road costs the company money every day. Downtime coverage helps replace lost income while a truck is being repaired after a covered loss. Some policies may also include rental reimbursement to help keep operations moving.
Equipment and Tools Coverage
Standard auto insurance often does not cover items like mechanic tools, tarps, chains, or diagnostic equipment if they are stolen. Equipment coverage fills this gap and protects the tools and gear that support daily operations.
What Trucking Companies Want From Their Broker
1. Industry Knowledge and Experience
Trucking companies need brokers who understand commercial transportation insurance, FMCSA rules, and the regulations in Quebec and Ontario.
2. Driver Eligibility and MVR Assistance
The biggest challenge for many trucking companies is finding insurable drivers. Insurance providers have strict rules when it comes to Motor Vehicle Records (MVRs).
In Quebec, this means checking the PEVL (Propriétaires, exploitants et conducteurs de véhicules lourds) profile. A good broker can review a driver’s PEVL or abstract before you hire them and tell you if they are insurable. This helps prevent costly surprises.
3. Monthly Reporting Policies
Large fleets often choose Monthly Reporting policies. Instead of paying a fixed annual premium, the company pays based on actual monthly mileage or revenue. This helps with cash flow, because premiums are lower when business is slow.
4. Help With Compliance and Filings
Trucking companies face regulatory requirements in different jurisdictions (CTQ, FMCSA, etc.). Errors in these filings can stop trucks at the border. Qubit Insurance checks the required details and provides permit-ready insurance certificates before binding coverage to help keep operations running smoothly.
5. Discounts for Telematics and Safety Technology
Many trucking fleets use dashcams and telematics (ELDs) to improve safety. Companies want brokers who can use this technology to help negotiate lower insurance rates. Many insurers now offer discounts for fleets that share safety data or install approved video equipment. A knowledgeable broker knows which insurers provide these savings and helps you take advantage of them.
Conclusion
Trucking companies need commercial motor insurance that fits how they operate. This includes having liability limits that meet legal requirements, such as the 4,500 kg+ heavy vehicle rules, and the limits required by shippers.
For carriers that run outside their province or into the United States, the coverage must also work in every territory. This means proper interprovincial coverage and full compliance with US rules, including the MCS-90 endorsement.
Qubit Insurance is an AMF certified broker in Montreal that specializes in commercial transportation insurance. Whether you operate in Montreal, run routes to Toronto and the GTA, or cross into the United States, we can help you find coverage that supports your operations.
Frequently Asked Questions
1. What are the liability requirements for heavy vehicles in Quebec?
For "Heavy Vehicles" (typically GVWR of 4,500 kg or more), the law requires a minimum of $1,000,000 in civil liability coverage. For vehicles transporting dangerous goods, this increases to $2,000,000. However, most commercial carriers, even those with lighter commercial trucks (3,000 kg+), opt for $2,000,000 to $5,000,000 to protect against lawsuits in Ontario and the US.
2. What is the difference between Bobtail and Non-Trucking Liability?
Bobtail coverage protects a truck when it is being driven for business purposes without a trailer attached (e.g., returning from a delivery). Non-Trucking Liability (NTL) protects the truck when it is being driven for personal, non-business use (e.g., an owner-operator driving home after their shift).
3. Do I need the MCS-90 endorsement?
If you are a Canadian carrier operating in the United States, yes. The MCS-90 is an endorsement on your policy that proves to US authorities that you meet the financial responsibility requirements to operate federally.
4. Can I pay my premiums based on mileage?
Yes, this is called a Monthly Reporting Policy. It is ideal for larger fleets (typically 5+ units). You report your mileage or revenue monthly, and your premium adjusts accordingly, which helps with cash flow during slower months.
