When employees drive their own cars to client meetings, collect supplies or visit a jobsite, “the car is insured” is not the end of the discussion. Review both the declared use of the employee’s vehicle and the business’s potential liability. This is general guidance for Ontario businesses and employees, not a new regulatory announcement.
Separate commuting from work-related trips
Driving to a regular workplace is different from travelling for company business. Aviva’s public guidance distinguishes ordinary commuting from work use and asks people using a personal vehicle for their job to explain that use to their insurance representative. Whether a personal policy needs adjustment or another arrangement is appropriate depends on the activities and the insurer’s requirements. Aviva’s vehicle-use guidance
Employees should check their vehicle policy first
Describe the purpose, frequency, estimated kilometres and area of travel, including any passengers or goods carried. Section 1.4.1 of FSRA’s current standard OAP 1 Owner’s Policy requires prompt reporting of changes to application information, including vehicle use; significant changes also involve written notification requirements. The form is approved for use from July 1, 2026. That does not mean the disclosure obligation began on that date. FSRA policy, printed page 3
Ask for written confirmation of how work use is reflected in the insurance arrangements, and retain the final policy or endorsement. An employer’s mileage or fuel reimbursement does not replace that check.
Businesses should ask about non-owned auto liability
Ask the commercial broker about non-owned automobile liability. Intact Public Entities describes coverage for liability exposures involving vehicles not owned by an organization but used on its behalf, generally designed to operate above the vehicle’s own insurance. Conditions still apply: an employee taking a work trip does not automatically trigger a payment under the employer’s policy. This is general guidance, not identical wording across insurers. Intact Public Entities FAQ
Separate two questions: what happens if the company faces a liability claim, and what happens if the employee’s own car is damaged? Do not equate liability protection with repair coverage, or assume employer coverage removes the need for accurate disclosure under the employee’s policy.
Prepare a short travel-use checklist
The following is A-Z Insurance’s suggested discussion approach, not a regulator-prescribed checklist:
- Which roles involve travel, whose vehicles are used, and for what tasks?
- Has the employee’s insurance representative confirmed that use?
- What relevant business coverage exists, with what limits, exclusions and triggers?
- Who reports and reviews changes in vehicles, duties or travel frequency?
Start with a situation summary without identity documents; exchange any required records through an agreed secure channel. Explore our commercial auto insurance and personal auto insurance services, or contact A-Z Insurance about coordinating the two.
By A-Z Insurance. Information checked October 20, 2026. Scope: general insurance information for Ontario. Actual arrangements depend on use, underwriting, policy terms and applicable law. This article does not determine liability or guarantee a claim outcome.