Many snow businesses start with a pickup that is already insured on a personal policy. Put a blade on it, start charging for driveways, and the question arrives: is a personal policy still the right fit, or does the truck need commercial auto coverage?
The honest answer is that it depends on your insurer, your province and how the truck is used. What does not change is the principle: auto insurance is priced on the use you declare, and plowing for pay is a use to tell your insurer or broker about.
General information only, not legal or insurance advice. Rules change; confirm with the regulator or agency named on this page, a lawyer for your specific situation, and your broker.
The Key Difference: Declared Use
Personal auto policies are written for personal driving, sometimes with limited business use. Commercial auto policies are written for vehicles used in a business. The Insurance Bureau of Canada notes that commercial auto coverage is needed for personal vehicles used for business.
Not every personal policy treats plowing the same way, and we do not suggest every personal policy excludes it. But if a claim happens while the truck is being used in a way the insurer did not know about, coverage can be disputed. ICBC puts it plainly for BC drivers: "If you're in the wrong rate class, it could affect your coverage and leave you personally responsible for the cost of any claims."
Side by Side
| Personal Auto | Commercial Auto | |
|---|---|---|
| Written for | Personal driving, sometimes limited business use | Vehicles used in a business |
| Plowing for pay | May not be contemplated; disclose it | Can be declared and rated |
| Mounted blade and spreader | Ask your insurer | Can be declared as equipment |
| Other drivers | Typically household drivers | Employees can be listed |
| Liability limits | Legal minimum or higher | Can be set to meet contract requirements |
| Certificates for clients | Not usually used for business certificates | Commonly provided for commercial clients |
The Legal Minimums
Every province we cover requires auto insurance, and the minimum third party liability is the same:
- Ontario: $200,000 minimum third party liability, per the Financial Services Regulatory Authority of Ontario.
- British Columbia: ICBC Basic includes $200,000 third party liability; Extended Third Party Liability can raise coverage up to $5 million.
- Alberta: basic auto insurance is required by law, with a $200,000 minimum third party liability.
- Saskatchewan: plate insurance includes $200,000 third party liability, according to IBC.
Commercial clients often ask for far more than the legal minimum. The Town of Slave Lake's snow tender required $2,000,000 in auto liability, and the Township of Otonabee-South Monaghan asked for $5,000,000 on owned vehicles.
Province by Province
Ontario
Beyond insurance, Ontario's Commercial Vehicle Operator's Registration (CVOR) applies to trucks with a registered gross weight or actual weight over 4,500 kg. A pickup can be exempt only if all conditions are met, including a manufacturer's gross vehicle weight rating of 6,500 kg or less and use "for personal purposes without compensation." A pickup used for paid plowing does not meet the "without compensation" condition. See Ontario commercial auto requirements.
British Columbia
ICBC uses rate classes including pleasure, commuting and business. Pleasure use allows up to six days a month of commuting, business or delivery use. Tell your Autoplan broker how the truck is used. See ICBC plow truck insurance.
Alberta
Basic auto insurance is required by law, and insurers use the standard owner's policy (SPF No. 1). Tell your insurer or broker how the truck is used; a policy rated for pleasure or commuting may not match plowing for pay. See Alberta commercial auto requirements.
Saskatchewan
Plate insurance comes through SGI, with extension coverage commonly arranged through a broker. If a truck carries farm plates and you plow for pay, check with SGI or a broker whether the plate class and your policy fit that work. See SGI plow truck insurance and rural and farm snow plowing.
When Commercial Auto Usually Comes Up
- You plow for paying customers, even part time.
- Employees drive the truck.
- A client asks for a certificate showing auto liability limits.
- You run more than one truck. See commercial auto and fleet insurance.
What About the Rest of the Business?
Auto insurance covers the truck. It does not cover slip and fall claims on the lots you clear. That is the job of general liability. See plow truck insurance, does personal auto insurance cover plowing and can I plow snow with my personal truck.
SnowPlowInsurance.ca is an independent referral service, not an insurance company or broker. We connect you with licensed brokers who provide quotes and advice. How this site works.
Sources
- IBC: Types of auto coverage
- IBC: Mandatory auto insurance requirements
- FSRA: The standard auto insurance policy
- Ontario: CVOR
- ICBC: Rate class
- ICBC: Basic insurance
- Alberta: Automobile insurance
Frequently Asked Questions
Can I use personal auto insurance on a plow truck?
It depends on your insurer and how the truck is used. Plowing for pay is a use to disclose to your insurer or broker, because undisclosed use can put a claim at risk.
What is the minimum auto liability for a plow truck?
The legal minimum third party liability is $200,000 in Ontario, BC, Alberta and Saskatchewan. Contracts often ask for more.
Does commercial auto cover slip and fall claims?
No. Auto insurance covers claims arising from the vehicle. Slip and fall claims on sites you service fall under general liability.