Commercial fleet insurance is a type of insurance plan that provides coverage for multiple commercial vehicles. Typically, a business is eligible for fleet insurance if they have 3 or more commercial vehicles used in day-to-day operations. The minimum number of vehicles depends on the insurer. Some insurers will allow small businesses with only 2 vehicles in their fleet.
If you are thinking of getting commercial fleet insurance, we cover everything you need to know in this article.
Why Get Commercial Fleet Insurance
Peace of Mind & Risk Management
The first key benefit of any commercial insurance is the peace of mind that you have an excellent risk management plan protecting your business.
Whatever industry you operate in—whether it’s construction, trades, car rental, installation services, or professional services— having a fleet of commercial vehicles means that you are open to various risks. You can’t predict when road accidents, theft, vandalism, and other similar unforeseen events will happen. Commercial fleet insurance can cover the surprise expenses of hospitalization or damage repairs in such instances.
The more vehicles you have, the more challenging it is to keep up with separate commercial auto insurance plans. Whether it’s a company car for transportation or cargo trucks for delivering goods or equipment, a comprehensive commercial fleet insurance allows you to manage everything using one convenient plan.
Discounted Group Rate
Commercial fleet insurance policies typically offer a discounted rate for multiple vehicles. This means that you will spend less in insuring all your cars and trucks through commercial fleet insurance than if you would secure individual commercial auto insurance plans for each vehicle.
Some commercial fleet insurance plans are meant for businesses that need to change vehicles regularly. For example, car rental business, where vehicles need to be in absolute tip-top shape, or in construction companies, where wear and tear can easily catch up with frequently and heavily used vehicles.
With commercial fleet insurance, you can have a special endorsement that will allow similar vehicles to be seamlessly covered when the time comes for replacements. This can be done without the need to overhaul your entire insurance plan.
However, in case you need to replace vehicles regularly, it’s best to inform the insurer from the start so that the endorsement can be put into the policy. It is also important to take note of what to do and whom to inform when vehicle replacement is needed.
Vehicles Covered By Commercial Fleet Insurance
A commercial fleet insurance can provide the coverage you need, whether you have a fleet of cars, cabs, vans, minibuses, SUVs, buses, trailers, trucks, or HGVs for the following purposes:
- Rent or hire
- Product deliveries
- Employee transportation
- Materials, tools, equipment transportation
Coverage of Comprehensive Commercial Fleet Insurance
When you look for a commercial fleet insurance plan for your business, you’ll come across the three main types:
- Third-Party Liability
Typically, third-party liability and collision will cost less than a comprehensive commercial fleet insurance policy. However, the catch is that you won’t get a broad scope of protection. Only a comprehensive commercial fleet insurance policy will cover your for all of the following:
1. Bodily Injury
If a road accident results in the injury or death of someone, commercial fleet insurance will help cover the medical costs and legal fees up to the coverage limit. With the right policy, this can also extend towards the driver and the passengers. Even when the driver is at fault for the accident and is injured, the policy will still pay out.
2. Property Damage
When a road accident occurs, property damage oftentimes goes hand-in-hand with bodily injury. Commercial fleet insurance will cover the repair or replacement costs of damaged property (e.g. third-party cars), up to the coverage limit. Legal fees can also be covered, depending on the plan you get.
3. Commercial Vehicle Damage
Damage to your commercial vehicles can happen because of a road accident or criminal elements who could vandalize or steal your vehicles. In any case, commercial fleet insurance provides assistance with the repair or replacement costs associated with such incidents.
Furthermore, depending on your plan, commercial fleet insurance can cover damage from other untoward incidents like hail, fire, and flying or falling debris.
A Few Things to Remember When Getting Fleet Insurance
Ready to get commercial fleet insurance for your business? Here are a few final tips to take note:
- Commercial fleet insurance policies need to have the names of the employees that will be driving the insured vehicles. This is an important step and thoroughness is recommended. Failure to name all pertinent employees can result in the denial of a future claim.
- Make sure to update your broker when you get a new employee onboard who will be driving your commercial vehicle.
- Be clear with your broker regarding the steps to take if you are going to replace a vehicle or add a new one.
- Not all commercial fleet insurance plans offer the same type of customized comprehensive coverage, so make sure to get yours from a trusted insurance broker.
Personalized Commercial Fleet Insurance For Your Business
KASE Insurance is your partner in keeping your business and your commercial fleet safe. As an award-winning commercial insurance brokerage firm, we are known for providing businesses from various industries with highly personalized commercial insurance plans that fit their needs.
Speak to one of our insurance experts for your next steps on getting commercial fleet insurance. Contact KASE Insurance now!