What is Commercial Motor Insurance?
Motor Commercial Insurance is a type of vehicle insurance that provides coverage for vehicles used for business or commercial purposes. This includes protection against financial losses due to accidents, theft, fire, and third-party liabilities. It is mandatory for all commercial vehicles in Kenya under the Traffic Act Cap 403.
At Laren Insurance Agency, we provide comprehensive commercial motor insurance solutions tailored to Kenyan businesses, helping you protect your fleet, comply with legal requirements, and ensure business continuity.
100%
Legal requirement for commercial vehicles
KES 5M+
Average commercial vehicle claim
24/7
Claims support & roadside assistance
Commercial Motor Insurance Options
We offer tailored commercial motor insurance solutions for different vehicle types and business needs.
Third-Party Only (TPO)
Mandatory Minimum Coverage
- Bodily injury to third parties
- Third-party property damage
- Death benefits for third parties
- Legal defense costs
- Most affordable option
Third-Party Fire & Theft
Enhanced protection at affordable rates
- All Third-Party Only benefits
- Fire damage to your vehicle
- Theft of your vehicle
- Attempted theft protection
- Moderate premium cost
Comprehensive Cover
Maximum protection for your business
- All Third-Party benefits
- Accidental damage to your vehicle
- Windscreen and entertainment system
- Personal accident cover
- Towing and roadside assistance
Who Needs Commercial Motor Insurance?
PSV Operators
Matatus, buses, taxis and ride-hailing vehicles requiring passenger liability coverage.
Logistics Companies
Trucks, lorries, tippers, tankers and courier vehicles with cargo liability.
Construction Firms
Heavy machinery, excavators, bulldozers and construction equipment.
Rental Businesses
Car hire and rental companies with fleet management needs.
Delivery Services
E-commerce, food delivery and parcel delivery vehicles.
Corporate Fleets
Company cars, vans and executive vehicles for business use.
Coverage Details
Third-Party Liability
- Bodily injury to third parties
- Death benefits for third parties
- Property damage to third parties
- Legal defense costs
- Court awards and settlements
Vehicle Protection
- Accidental damage repair
- Fire and explosion damage
- Theft and attempted theft
- Natural disasters protection
- Windscreen and glass damage
Additional Benefits
- Personal accident cover
- Emergency towing services
- Roadside assistance
- Entertainment system cover
- Medical expenses coverage
Why Commercial Motor Insurance is Essential
Commercial vehicles face higher risks than personal vehicles due to extensive usage, heavy loads, and complex operating environments. Without proper insurance, a single accident could result in devastating financial consequences for your business.
Legal Requirement
The Traffic Act Cap 403 makes commercial motor insurance mandatory for all business vehicles in Kenya. Operating without valid insurance can result in severe penalties, including fines, vehicle impoundment, and business license revocation.
Beyond legal compliance, commercial motor insurance provides:
- Legal Requirement – All commercial vehicles in Kenya must have insurance before being allowed on the road
- Financial Protection – Covers repair and replacement costs in case of accidents or theft
- Liability Coverage – Protects against legal claims from third parties
- Business Continuity – Ensures minimal disruptions in operations by covering damages and liabilities
- Peace of Mind – Reduces financial risks associated with commercial vehicle ownership
Policy Exclusions & Limitations
While commercial motor insurance provides comprehensive coverage, understanding policy exclusions helps ensure you have appropriate additional coverage where needed.
Standard Exclusions
- Mechanical or electrical breakdowns
- Wear and tear or depreciation
- Driving under influence of alcohol/drugs
- Unlicensed or unauthorized drivers
- Illegal activities involving the vehicle
Additional Limitations
- Overloading or misuse of vehicle
- Racing or speed testing
- War and civil commotion
- Nuclear risks
- Consequential losses
Why Choose Laren Insurance Agency?
- Specialized expertise in commercial motor insurance for Kenyan businesses
- Comprehensive risk assessment and fleet management advice
- Access to multiple insurance providers for competitive pricing
- Quick and fair claims processing with dedicated commercial vehicle specialists
- Understanding of industry-specific vehicle risks and regulatory requirements
- Customized coverage options for different vehicle types and business sizes
- Ongoing policy review and risk management support
- Regulatory compliance guidance with NTSA and IRA requirements
Frequently Asked Questions
Commercial motor insurance is designed for vehicles used for business purposes, while private motor insurance covers personal vehicles. Commercial policies typically have higher liability limits, cover goods in transit, and may include additional protections like loss of use or business interruption coverage. Premiums are generally higher for commercial vehicles due to increased risks and usage.
Yes, PSV vehicles require specialized commercial motor insurance with higher passenger liability limits. The Insurance (Motor Vehicles Third Party Risks) Act mandates specific coverage for vehicles carrying passengers for hire or reward. PSV insurance typically includes enhanced medical expenses coverage and higher third-party liability limits to protect passengers and other road users.
Commercial motor insurance premiums are calculated based on several factors including: vehicle type and value, usage patterns, geographical area of operation, driver experience and records, claims history, coverage type selected, seating capacity (for PSVs), cargo value (for goods vehicles), and security measures in place. We work with multiple insurers to find you the most competitive rates for your specific business needs.
To get commercial motor insurance, you typically need: vehicle logbook, business registration certificate, valid inspection certificate, NTSA records, driver details and licenses, previous insurance details (if any), and vehicle purchase documents. For fleet policies, we may require additional information about your business operations and risk management practices.
Yes, we offer flexible insurance solutions including short-term policies for seasonal businesses, temporary vehicles, or specific projects. These can range from one month to several months and are ideal for construction projects, seasonal transportation needs, or temporary fleet expansions. Contact us to discuss your specific temporary insurance requirements.
Ready to Protect Your Business Fleet?
Get comprehensive commercial motor insurance coverage tailored to your specific business needs. Our experts will help you find the right protection at competitive rates.