Freight transportation keeps Québec’s economy moving from delivery trucks crisscrossing the province to ships loading cargo at the Port of Montréal. Whether your business hauls lumber, electronics, chemicals, or frozen food, having the right insurance coverage isn’t just smart, it’s legally required.
A local plumbing company with two Ford Transits in Québec City may spend about $2,000 per vehicle yearly, while a Montréal-based cross-border carrier operating heavy trucks can exceed $9,000 due to higher liability and U.S. filing costs.
This guide explains which types of freight transportation require insurance in Québec, how coverage differs by mode, and what these policies cost. It’s written for business owners, fleet managers, and freight operators who want a clear, fact-checked overview of compliance, cost, and protection.
Understanding Freight Transportation in Québec
Freight transportation means moving commercial goods by road, rail, air, or water. Québec’s freight system is among the most diversified in Canada, and every mode carries unique risks of collisions, cargo loss, theft, or environmental damage.
Commercial Transportation Insurance ensures that your business remains compliant with Québec’s Automobile Insurance Act, the Highway Safety Code, and federal laws like the Transportation of Dangerous Goods (TDG) Regulations and the Canada Transportation Act.
Why Freight Insurance Is Mandatory
All freight carriers in Québec must hold civil liability insurance to protect others from damages caused during transportation. Québec’s hybrid system divides coverage between public and private insurers:
Public coverage (SAAQ): Pays for bodily injuries suffered in accidents, both in Québec and outside the province if the injured party is a Québec resident.
Private coverage: Protects against property damage, cargo loss, and civil liability where SAAQ coverage doesn’t apply including cross-border operations.
Operating without valid insurance can lead to suspension by the Commission des transports du Québec (CTQ) and heavy fines.
1. Road Freight Transportation
Road carriers handle the vast majority of freight in Québec and are regulated through the Registre des propriétaires et des exploitants de véhicules lourds (RPEVL).
Vehicle Classes
Light vans, cube trucks, flatbeds, tractor-trailers, dump trucks, tankers, and tow trucks.
Minimum Coverage Requirements (2025)
- $50,000 for light commercial vehicles under 4,500 kg GVWR
- $1,000,000 for heavy vehicles (GVWR ≥ 4,500 kg)
- $2,000,000 for dangerous goods exceeding TDG thresholds
Typical Annual Costs
- Light vans/pickups: $1,200–$3,000
- Medium trucks: $2,500–$5,000
- Tractor-trailers: $6,000–$12,000
- Hazmat carriers: $15,000–$25,000
2. Rail Freight Transportation
Rail handles bulk commodities like wood, minerals, and chemicals. Carriers must meet the Canada Transportation Agency (CTA)’s liability requirements under the Canada Transportation Act.
Coverage Requirements
Rail operators must carry insurance for:
- Third-party injury or property damage
- Environmental cleanup and restoration
- Cargo and rolling stock loss or damage
Large Class I railways maintain coverage between $25 million and $250 million, depending on the type and volume of goods hauled.
Example: A Québec mining company leasing its own freight cars must still ensure its operations are covered for derailments and environmental impact, even when a major railway provides primary coverage.
3. Marine Freight Transportation
Québec’s ports, especially Montréal and Sept-Îles, are critical to global trade. Marine carriers follow the Marine Liability Act and Marine Insurance Act.
Key Insurance Types
- Protection & Indemnity (P&I) for third-party liability
- Hull & machinery for vessel damage
- Cargo insurance for goods in transit
- Pollution liability coverage for spills.
Small carriers often carry $5–10 million in coverage, while ocean-going vessels maintain $25 million or more.
Example: A container ship departing Montréal with electronics en route to Europe is covered under a marine cargo policy protecting against fire, collision, and loss at sea.
4. Air Freight Transportation
Air freight moves high-value or urgent shipments. Québec carriers follow Transport Canada’s CARs 606 and the Montreal Convention, which limits carrier liability to 22 SDR per kilogram unless a higher value is declared.
Coverage Requirements
- Third-party legal liability: $1M–$7.5M
- Cargo insurance: SDR-based
- Passenger liability (for combination carriers)
Example: A small air courier flying medical samples between Montréal and Toronto carries $2 million in third-party coverage plus declared-value cargo insurance.
5. Intermodal and Multimodal Freight
Many shipments combine road, rail, and marine routes. Each mode must meet its own insurance obligations, and cargo coverage should remain continuous throughout the shipment.
Example: A shipment traveling by truck from Québec City to Montréal, then by rail to Vancouver, needs:
- RPEVL compliance on the road leg
- CTA coverage during rail transport
- Unified cargo insurance across both
Typical combined liability coverage ranges from $1 million to $10 million.
Factors That Influence Freight Insurance Costs
Freight insurance costs are shaped by a combination of operational factors, cargo characteristics, and your company’s safety record.
Key factors include:
- Type and value of cargo (hazardous or perishable goods cost more)
- Distance and route (cross-border adds 20–30%)
- Driver experience and safety record
- Fleet telematics and dash-cams (5–12% discount)
- Deductible and coverage limits
Example: A fleet using GPS and telematics can reduce annual premiums by 10–15%, especially if they maintain strong maintenance logs and low claim frequency.
How Qubit Insurance Supports Freight Businesses
Qubit Insurance Group Inc. is an AMF-regulated brokerage specializing in transportation, logistics, and fleet insurance. They combine deep regulatory expertise with local bilingual service offering support in English and French for clients across Québec.
Why Québec carriers choose Qubit:
- Guidance on CTQ, RPEVL, and MCS-90/BMC-91 filings
- Expertise in road, rail, air, and marine freight coverage
- Competitive quotes from top Canadian insurers
- Dedicated claims assistance and renewal support
- Bilingual service (English and French) for all Québec clients
Example: A refrigerated carrier working between Montréal and Toronto reduced premiums by 18% after Qubit tailored a plan combining civil liability, cargo spoilage, and downtime coverage.
Get in touch with us:
Get a no-obligation quote from Qubit Insurance today. Contact our bilingual Québec office to speak with a licensed broker who understands your industry and helps you save safely.
