Jennifer Oegema, BBA, CAIB, CPIB Ontario Trucking Insurance is a network of RIBO-licensed insurance brokers specializing in commercial trucking. All content is written and reviewed by active industry professionals with direct underwriting experience. Expert review by Jennifer Oegema, BBA, CAIB, CPIB (Oegema, Nicholson & Associates), edited by Adam Mitchell (Mitch Insurance Brokers). Our editorial standards →
Primary auto liability insurance is the most critical coverage in your trucking policy—and it's legally required. If your truck is involved in an accident that injures someone or damages their property, this coverage pays for their losses. Without it, you can't legally operate a commercial vehicle in Ontario, and you'd be personally responsible for potentially millions in damages.
What Is Commercial Truck Liability Insurance?
Commercial truck liability insurance (also called "primary liability" or "third-party liability") protects you when you're legally responsible for harm to others. It covers two main types of damage:
Primary Liability Coverage Includes:
- Bodily Injury Liability — Pays for injuries you cause to other people, including medical expenses, rehabilitation, lost wages, and pain and suffering
- Property Damage Liability — Covers damage to other people's property, including vehicles, buildings, cargo, and infrastructure
- Legal Defense Costs — Pays for lawyers, court costs, and settlements if you're sued
- Accident Benefits — In Ontario, statutory accident benefits are also included for injured parties
Ontario requires a minimum of $2,000,000 in liability coverage for commercial vehicles. This is significantly higher than the $200,000 minimum for personal vehicles—and for good reason. Commercial trucks cause more severe damage in accidents due to their size and weight.
Important: $2M May Not Be Enough
While $2M is the legal minimum, many serious accidents exceed this amount. "Nuclear verdicts" (jury awards exceeding $10M) are increasingly common in trucking cases. Many carriers now require their drivers to carry $5M or higher liability limits. Consider umbrella/excess liability coverage to boost your limits cost-effectively.
Why Do You Need Liability Insurance?
It's the Law
Ontario's Compulsory Automobile Insurance Act requires all commercial vehicles to carry minimum $2M liability. Operating without it means fines up to $50,000, vehicle impoundment, and CVOR penalties.
Shipper & Carrier Requirements
Load boards, freight brokers, and carriers won't work with uninsured drivers. Most require certificates of insurance before dispatching any freight.
Protect Your Assets
Without liability coverage, you're personally responsible for all damages. A serious accident could cost you your truck, savings, home, and future earnings through wage garnishment.
Nuclear Verdict Protection
Trucking lawsuit awards have exploded in recent years. A single catastrophic accident can result in $10M+ verdicts. Adequate liability coverage is your only protection.
How Much Does Liability Insurance Cost?
Primary liability insurance typically accounts for 40-50% of your total trucking insurance premium. For most Ontario truckers, this means $4,000 to $12,000 per year for $2M coverage.
| Factor | Impact on Premium |
|---|---|
| Coverage Limit | $2M costs less than $5M; each increase adds 15-25% |
| CVOR Status | "Conditional" rating adds 35-50% to liability premium |
| Driving Experience | Under 3 years adds 25-40%; clean record saves 10-15% |
| Operating Radius | Cross-border US adds 30-50%; local is cheapest |
| Cargo Type | Hazmat and heavy haul increase liability rates significantly |
| Claims History | Each at-fault accident adds 20-40% for 3-6 years |
Liability Premium by Operation Type:
Real Claim Examples
Understanding how liability coverage works in real accidents helps you appreciate why adequate limits matter. Here are three Ontario trucking claims:
Multi-Vehicle Highway 401 Collision
A commercial truck driver misjudged stopping distance during rush hour near Toronto, causing a chain-reaction collision involving 4 vehicles. Total damages included 3 totaled vehicles, 2 serious injuries requiring hospitalization, and significant traffic delays resulting in additional claims.
Pedestrian Accident in Brampton
While making a right turn at an intersection, a dump truck driver struck a pedestrian in the crosswalk. The pedestrian suffered permanent injuries including a broken pelvis and traumatic brain injury, resulting in substantial medical costs and loss of income claims.
Property Damage at Warehouse
A flatbed truck driver miscalculated clearance while backing into a loading dock, striking the building's support column. The impact caused structural damage requiring $180,000 in repairs, plus $65,000 in inventory damage from a partial roof collapse.
Tips to Reduce Your Liability Premium
Maintain a Clean CVOR
Your Commercial Vehicle Operator Registration (CVOR) directly impacts liability rates. Fight unfair tickets, fix violations promptly, and implement safety programs to maintain "Satisfactory" status.
Install Dash Cams
Forward and rear-facing cameras can reduce premiums by 5-10% and protect you from fraudulent claims. Insurers love the documentation they provide.
Complete Safety Training
Accredited safety courses like PMTC or Truck Training Schools Association programs can qualify you for 5-10% discounts with participating insurers.
Consider Higher Limits
Paradoxically, drivers with higher limits (showing risk awareness) sometimes get better rates. Plus, you're protected against nuclear verdicts.
Work with Specialized Brokers
General insurance agencies don't understand trucking. Work with brokers who specialize in commercial transportation—they know which markets offer the best rates.
Industry Classification Codes
Commercial truck liability premiums are determined by operation classifications. Trucking operations are categorized by NAICS codes (484110 for local, 484121 for long-distance) with corresponding WSIB and ISO ratings.
Ontario Trucking Insurance Classification Reference
Cross-reference table for NAICS, WSIB, ISO, and NCCI codes
| Category | NAICS (i) | WSIB (i) | ISO (i) | Risk Level | Avg. Premium |
|---|---|---|---|---|---|
| General Freight Trucking, Long-Distance Long-haul trucking operations exceeding 150km radius | 484121 | 70220 | CA 7219 | High | $12,000 - $18,000/year |
| General Freight Trucking, Local Local delivery within 150km radius | 484110 | 70210 | CA 7218 | Medium | $6,000 - $10,000/year |
| Specialized Freight - Refrigerated Temperature-controlled cargo transport | 484230 | 70230 | CA 7228 | High | $14,000 - $22,000/year |
| Specialized Freight - Flatbed/Heavy Haul Oversized loads, machinery, construction equipment | 484220 | 70230 | CA 7222 | Very High | $18,000 - $28,000/year |
| Specialized Freight - Tanker/Hazmat Hazardous materials, fuel, chemicals | 484230 | 70240 | CA 7229 | Very High | $22,000 - $35,000/year |
| Used Household Goods Moving Residential and commercial moving services | 484210 | 70220 | CA 7217 | Medium | $8,000 - $14,000/year |
| Dump Truck Operations Construction materials, aggregate hauling | 484220 | 70230 | CA 7216 | High | $10,000 - $16,000/year |
| Tow Truck/Wrecker Services Vehicle recovery and towing | 488410 | 70250 | CA 7227 | High | $12,000 - $20,000/year |
Note: Premium estimates are based on 2024 Ontario market rates for operators with clean CVOR records. Actual premiums vary based on experience, claims history, fleet size, and cargo type. Get a personalized estimate →
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Frequently Asked Questions
What's the difference between liability insurance and full coverage?
Liability insurance only covers damage you cause to others. "Full coverage" typically includes liability PLUS physical damage coverage (collision and comprehensive) for your own truck. Most owner-operators need both.
Is $2M liability really enough?
For many operations, $2M is becoming inadequate. Serious accidents with injuries can easily exceed this limit. If you're running cross-border, most US shippers require $1M USD minimum (about $1.35M CAD), and many now require $5M. Consider umbrella coverage to boost your limits cost-effectively.
What happens if my accident exceeds my policy limits?
You're personally liable for any damages beyond your policy limits. This means creditors can pursue your personal assets, including your home, savings, and future earnings. This is why adequate coverage is so critical.
Does liability cover my own injuries?
Not directly. Liability insurance covers others' injuries. For your own injuries, you'd use the Accident Benefits portion of your auto policy, or occupational accident insurance / workers' compensation if you have it.
Can I get liability insurance with a bad CVOR?
Yes, but it's more difficult and expensive. Some specialty insurers work with "Conditional" CVOR carriers, but expect to pay 35-50% more. A specialized trucking broker can help find markets that will still cover you.