June 16, 2017

The Ministry of Transportation (MTO) is amending the definition of ‘road building machines’ (RBM) under the Highway Traffic Act.   The new reclassification rules will come into effect on July 1, 2017.    This may affect your business operations.

Certain units currently Insured under a Contractor’s Equipment Floater on a Commercial Business / Liability Policy can no longer be insured this way as of July 1, 2017.    They must be removed & placed on an Automobile Insurance Policy.   This could also apply to units that you rent or lease, even if it is not owned by you.

Clink on this link to the MTO website regarding these changes.

Due to the complicated nature of this, we recommend that you call the MTO at your very earliest for any clarification, to see how this affects your business.

Basically, if your equipment is no longer considered a RBM under the new reclassification, you will be affected in the following ways:

  • Vehicle registration (under the Highway Traffic Act) & possible vehicle licensing, plate & validation fees
  • Proof of motor vehicle insurance (must now be insured on an automobile insurance policy)
  • Drivers must be licensed with the appropriate class of license to operate these units (class G or class D as applicable)
  • Commercial Vehicle Operator’s Registration (CVOR) – usually this is based on unit’s Gross Vehicle Weight
  • Emissions testing, Safety Inspections & certificates, Load Security, speed restrictions, signage on applicable units & other Highway Traffic Act regulations
  • Hours of Service Regulations
  • All associated record keeping
  • The MTO also has a publication with information about Ontario Tax Applications on this reclassification that affects various implications to things as fuel tax, gasoline tax, sales tax, exemptions & refunds on taxes, etc.

It is your responsibility to ensure that your business operations follow the new regulations set out by the MTO.   We are bringing this to your attention as it does affect how you Insure any of your reclassified units.

We are asking that you contact our office BEFORE July 1, 2017 and let us know if you have any units affected by this change to the Highway Traffic Act so that we can offer you the proper insurance to protect your company.