Every business, big or small, local or global, needs insurance. Here, we are explicitly talking about commercial vehicle insurance, which is a necessity for every business in today’s day and age. The scale of the company doesn’t matter; you could own a delivery bike/van, cargo truck, service vehicle, or public utility unit - you protect your livelihood with the right insurance. In the Philippines, it has been observed that business owners usually focus on basic coverage and overlook the extensions that could save them from severe financial troubles.
As roads become riskier (with more vehicles and heavy traffic), it is increasingly important to discuss the most overlooked commercial vehicle add-ons that could save you in times of need. In addition to heavier traffic, rising repair costs, unpredictable weather, and stricter regulations, relying on minimum coverage is neither sufficient nor advised.
If you are a commercial vehicle owner and policyholder, then this article is a must-read. Here we have highlighted some of the most overlooked commercial vehicle insurance add-ons in simple terms, along with how they help protect your income, business operations, and employees.
So, let’s get started…
Commercial vehicle insurance in the Philippines: Explaining the basics
What vehicles are covered under commercial vehicle insurance? It usually covers all the vehicles used for business purposes, for instance -
- Delivery vans and trucks
- Buses and shuttle services
- Logistics and cargo vehicles
- Company service vehicles
What’s the basic coverage requirement for a commercial vehicle? The law requires that most commercial vehicles have Compulsory Third Party Liability (CTPL) insurance. This one offers minimum coverage, including third-party bodily injuries or death. It does not cover vehicle damage, loss of income, or any other real-world risks.
It is here that comprehensive insurance comes into play with its enhanced set of protections, but even this plan has its own limitations. This is why add-ons play an essential role in commercial vehicle insurance.
Also Read: Why every truck business needs Comprehensive Truck Insurance in the Philippines
Why commercial vehicle insurance matters in 2026
You see, in 2026, Filipino commercial vehicle owners face growing challenges like -
- High rate of accidents due to traffic congestion
- High cost of vehicle parts and repairs
- Sudden floods and typhoons
- High risk of theft and cargo loss
- High pressure to maintain uninterrupted operations
Insurance add-ons for commercial vehicles help fill coverage gaps caused by the risks mentioned above. Thus protecting your business from unexpected expenses.
Most overlooked commercial vehicle insurance add-ons (for 2026)
Photo from FreepikEngine protection coverage
Engine repairs are expensive and are therefore often excluded from standard insurance policies. Here are a few essential details -
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Coverage |
It compensates for -
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Why is it often ignored? |
One of the most overlooked coverages, as many assume the engine is covered under a standard policy. |
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Importance |
Flooding is a common risk that underscores the importance of engine protection. |
Loss of income coverage
When the vehicle is under repair, the business suffers a loss of operation and income.
Here are a few essential details on this coverage
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Coverage |
It compensates for -
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Why is it often ignored? |
Many commercial vehicle insurance policies focus on physical damage and not business interruption. |
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Importance |
Small businesses rely on daily operations to survive. |
Commercial roadside assistance
This particular add-on goes beyond basic towing services, and the truth is, a business needs more than just that. Here are a few essential details -
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Coverage |
It covers the following -
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Why is it often ignored? |
Many commercial vehicle insurance policyholders believe this is available for private cars. |
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Importance |
Vehicle breakdown comes without warning. It is better to remain insured than to experience delays, penalties, and lost clients. |
Acts of Nature (AON) coverage
This add-on protects the vehicle against damage caused by natural disasters. Here are a few essential details -
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Coverage |
The most common risks include -
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Why is it often ignored? |
Many business owners assume it is already covered in a standard policy. |
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Importance |
Climate-related damage is at its peak. |
Cargo & goods-in-transit coverage
Cargo is not automatically covered and therefore requires special coverage. Here are a few essential details -
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Coverage |
It offers protection for -
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Why is it often ignored? |
Business owners assume that liability in such cases falls on the client. |
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Importance |
Lost or damaged goods can lead to disputes with your customers and erode trust. |
Personal accident coverage (for driver & helper)
Commercial vehicles often carry more than one worker, all working hard to fulfil your commitments. Thus, making this protection essential. Here are a few basic details -
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Coverage |
It includes the following -
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Why is it often ignored? |
Businesses usually view it as an expense, and they rely on basic labour benefits. |
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Importance |
It offers immediate financial support after an accident. |
Third-party property damage coverage
It is a hard-hitting fact that property damage is not covered by CTPL insurance. Here are a few essential details -
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Coverage |
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Why is it often ignored? |
One of the most ignored areas of coverage, and many assure that CTPL covers such matters. |
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Importance |
Property damage claims can be very costly without insurance. |
Legal assistance
Often, accidents result in legal issues, making legal aid coverage essential. Here are a few basic details -
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Coverage |
It helps with -
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Why is it often ignored? |
In general, businesses and individuals often feel that legal problems are ignored until the need arises. |
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Importance |
Getting this coverage can help save you time, stress, and money. |
Theft coverage
Basic theft coverage offered under a comprehensive plan might be limited. Here are a few essential details -
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Coverage |
This add-on offers protection against -
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Why is it often ignored? |
Many assume it is already covered. |
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Importance |
Commercial vehicles are a frequent target. |
Replacement vehicle coverage
Business must go on even when the vehicle is under repair. Here are a few essential details -
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Coverage |
It offers -
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Why is it often ignored? |
Owners often focus on claim approval. |
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Importance |
It ensures business continuity without fail. |
Also Read: Top 7 risks covered by truck and commercial vehicle insurance
Saving money with add-ons
Photo from FreepikIt is essential to understand how add-ons help Filipinos save money. You see, although add-ons increase the premium, they offer these benefits -
- Reduces unexpected expenses
- Prevents income loss
- Protects your cargo and employees
- Improves long-term business stability
Note that for many business owners, the cost of add-ons is much lower than the losses they incur.
Also Read: Truck/Commercial Vehicle Insurance 101: What Filipino business owners need to know
Choosing the right add-on for your business vehicle
Which add-ons are suitable for your business? Helping to solve the matter, we have curated a list of questions you need to answer -
- How often is the vehicle used?
- Can your business afford downtime?
- Does the vehicle pass a flood-prone area?
- Do you transport goods or passengers?
Answers to these questions will help you choose the right add-on. Furthermore, you can consult with an agent.
Mistakes commercial vehicle owners must avoid
Mistake 1. Choosing the cheapest policy
Mistake 2. Assuming all risks are covered
Mistake 3. Not reading the policy exclusions
Mistake 4. Failing to update coverage as the business grows
Avoid these mistakes and get better protection in 2026.
Bottom line
As road risks continue to rise, basic insurance coverage is no longer enough. As a business owner, you need a policy that ensures there is no lag in your operations, especially when something can be easily covered by insurance. For this to happen, you need more than a basic policy that offers comprehensive coverage; you also need necessary add-ons. With the right policy, you will get strong protection against income loss, accidents, disasters, and legal issues.
Remember, choosing the right insurance policy today for your business will ensure smooth operations, peace of mind, and most importantly, financial stability.
Also Read: How to file a claim for a truck or commercial vehicle accident: A simple guide
FAQs
Q1. Do all commercial vehicles require insurance?
Ans. Yes, all motor vehicles, be it for personal or commercial use, need at least Compulsory Third-Party Liability (CTPL) insurance. Comprehensive and add-on policies are not required by law, but they provide extra protection.
Q2. Are commercial vehicle insurance add-ons expensive?
Ans. Most add-on coverage is affordable, especially compared to the repair or legal costs incurred in its absence.
Q3. Is flood damage automatically covered in a commercial vehicle insurance policy?
Ans. No, flood damage usually requires Acts of Nature/God coverage in the policy.
Q4. Do small businesses benefit from add-ons?
Ans. Definitely, add-ons help protect the limited cash flow of small businesses, helping them survive even in the worst situations.
Q5. Can second-hand vehicles get add-on protection?
Ans. Yes, but the inclusion could be subjected to inspection.
Q6. Is cargo insurance mandatory?
Ans. No, but it is highly recommended for business owners, as it will help you recover more effectively.
Q7. Does roadside assistance cover provincial travel?
Ans. Most commercial plans cover provincial travel, but it is advisable to read the policy terms beforehand.
Q8. Can you add coverage during an active policy?
Ans. Yes, some insurance providers allow business owners to modify coverage.
Q9. Are drivers covered by default in a commercial vehicle policy?
Ans. Not necessarily, personal accident coverage is often optional.
Q10. Which add-on is most recommended for delivery vehicles?
Ans. In 2026, the following commercial vehicle insurance coverage is recommended: loss of income, cargo coverage, and roadside assistance.
Also Read: Does commercial vehicle insurance cover cargo loss or theft?
