Commercial Insurance Basics
Whether you have one vehicle operation or a fleet of vehicles, you need the proper protection with a commercial auto insurance solution based on your needs. Commercial insurance is required on vehicles that operate outside of personal use purposes.
A commercial vehicle is defined as a truck or trailer combination that is used for business or commercial purposes and operated more than:
- 30 km from the registered owner’s place of business (if not located in an urban municipality)
- 30 km from the municipal boundary (if business is located in an urban municipality other than Winnipeg)
- 20 km from the City of Winnipeg municipality boundary (if located in Winnipeg)
Limited-use commercial trucks are treated separately as their gross vehicle weight is 4,500 kg or more and specifically used for commercial purposes other than gain or compensation. Also operated less than or equal to the specifics listed for commercial vehicles.
With that said, there are a lot of factors that go into determining what class to register trucks being used for commercial purposes, and if you’re confused we don’t blame you. From vehicle weight, qualifying cargo, to operating radius it’s hard to know what you need to be doing when registering your vehicle. Your MIG broker will be able to help answer any questions you may have and register your vehicle with the correct class and coverages specific to your requirement.
Special Risk Insurance Extension for Commercial Auto Insurance
Special risk extension provides commercial auto insurance coverage in excess of basic Autopac in Manitoba. This offers options for coverage, extension coverages, vehicles not covered by Autopac, and policies not available through Autopac. So, when is SRE mandatory? Vehicles that are restricted or limited through Autopac such as heavy vehicles, semi trailers (no coverage through Autopac), and trailers with basic liability coverage.
Coverage can be bound in our offices except in the following instances:
- Coverage is available through Autopac
- No published rates for the limits required
- When in the last 2 years
- Any driver of the vehicle has had 2 or more accidents
- Cancelled, suspended, cancelled or declined insurance
- Suspended drivers
- Vehicles being stored outside of Manitoba
- Vehicles that are used for racing purposes
What is special risk extension coverage for commercial auto?
Special risk extension coverage for commercial auto insurance examples
Who needs SRE
Income Replacement Indemnity (IRI)
Through your basic Autopac, coverage protects income up to $96,000 in the event of accident resulting in disabling injury causing an inability to work. Through PIPP (personal injury protection plan) which covers all Manitobans, there is a limit to which income will be replaced. Therefore if you make more than the limit of $96,000 and don’t have other disability insurance, through your work for example, it may be worth considering bumping up your coverage.
IRI extends your maximum limit on your gross yearly income, above the limit described in PIPP. Just as coverage wit PIPP, income replacement will cover 90% of your net income with a waiting period of seven days. Motor vehicle death compensation uses income replacement coverage to determine entitlement to funds in the event of a death payment.
There is a maximum limit of $200,000 over the basic limit. For example if you make $300,000 the absolute maximum amount of coverage that you’re able to purchase is $296,000 with the value being the actual income you’ve lost. Increments of $10,000 can be purchased at a cost of $20 (minimum policy premium of $50 required). Your MIG broker can help you understand income replacement better to determine if you need to increase your coverage.