Fleet Liability

Preventive maintenance is an essential part of an effective fleet risk-management program. Your organization may be held liable for a collision if a driver operates a vehicle for business purposes.

A vehicle collision is recognized as the greatest potential source of loss for many businesses. If your company's operations depend on the use of cars, trucks or other vehicles, implementing fleet loss-prevention methods may add up to:

  • Fewer claims 
  • Less severe or costly losses
  • Lower insurance premiums in the long run.

Employer Responsibilities

Whether a vehicle is owned by a company or by an individual, when used by employees and/or volunteers for business purposes, there are potential risks.

For instance, there is vicarious liability. Business owners should be aware that they are generally responsible for the negligence of employees and/or volunteers when they operate a vehicle or equipment on behalf of the organization. 

Compliance Responsibilities

Across the country, there are many government regulations and mandatory coverage requirements for using vehicles to conduct business operations. For example:

  • The Motor Vehicle Safety Act sets out standards and inspection requirements for all vehicles and equipment in Canada. Review a sample motor vehicle safety policy. 
  • Transport Canada's National Safety Code  for motor carriers is mandatory for trucks, tractors and trailers with a registered gross vehicle weight greater that 4,500 kg (10,000 lbs). 

Additional local government regulations and legislation may apply. If you have questions about your fleet liability risks, contact your insurance representative for more information about coverage options. Learn more about risk management best practices for fleets.  


Source: Compiled with Canadian Risk Intervention Inc.