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Insuring one car can cause enough headaches, let alone a whole fleet of them. Fortunately, your business vehicles can be covered under a fleet policy, rather than insuring them individually.
Whether you have a fleet of 11 (usually the minimum number of vehicles to be considered a fleet) or 1100, each one needs to be protected against theft, accidents and, of course, third party injury and damage.
Who needs business fleet insurance?
Anyone who runs a fleet has a duty of care to those who drive vehicles within it, so ensuring that your fleet is insured is essential. It is commonly the job of the fleet manager to adequately insure the fleet, but as to who makes the final decision depends on individual company policy.
What does business fleet insurance cover?
Most policies will provide liability cover of up to $20 million in the case of damage caused to other vehicles or property, and also cover mechanical failures within an agreed area (i.e. Australia). In the case of a mechanical mishap, such as a car breaking down, the insurance company may cover you provided that you use a preferred mechanic. If you take the vehicle to a mechanic of your choice, there is no guarantee that you will be covered under you fleet insurance policy.
In some instances, insurance claims may be denied if the vehicle has been parked in a high-risk area for theft or vandalism. In addition, insurance for the loss of a vehicle may only extend to the market value of the car or the insured amount, not a new for old replacement.
Additional benefits may apply in certain instances, such as funeral costs in the event of the death of a fleet driver (due to an accident in one of the fleet vehicles), hire car fees while a car is being replaced, goods and personal property replacement, new replacement vehicles or lease payouts.
How much does business fleet cover cost?
Many varying factors are taken into account when calculating the cost of a fleet's policy. The history of the fleet's management and number of prior accidents or incidents of theft are all considered. In addition, an organisation's risk management procedures and the location and operating radius are also taken into consideration, as is the condition of the cars. Some underwriters may have separate policies for fleets of under or over 100 cars. Generally, a list of drivers is not necessary. As long as the driver holds a valid licence and is authorised by the company, anyone can drive the fleet vehicles.
