When it comes to company fleet insurance policy, there’s no one-size-fits-all approach. While basic auto insurance policies are similar between vehicles, each piece of equipment has unique characteristics that require specialised care. No matter what type of fleet you manage, this guide on how to develop a strategy for managing insurance will help you develop the right plan to keep your business compliant, safe and protected from losses and liability claims.
Step 1: Know the Rules
Fleet insurance regulations are not always straightforward, so it’s important to know what kinds of coverage and limits you need to keep your fleet safe. For example, you may be required by law to maintain commercial vehicle insurance coverage. If your business owns three or more vehicles that cost £3,000 or more each or transport goods and people, you may be required by law to obtain commercial auto insurance—even if your car isn’t used commercially.
Step 2: Prioritise Assets
Protecting your fleet is essential, and developing a strategy for managing insurance will help you meet all compliance requirements while keeping costs low. In addition, by identifying which assets within your fleet are most valuable (i.e., adding some context), you can better understand how much insurance coverage you need and where it should be placed.
Step 3: Manage Risk
Risks inherent in fleet management stem from driver behaviour and vehicle-related incidents. One way to reduce risks is through driver training. By providing your drivers with regular training and rewards, you may be able to decrease their chances of an accident while on duty, thereby lowering your costs. For example, you could provide professional training at least once per year. In addition, your company could offer incentives such as reduced deductibles or additional coverage options that encourage safe driving habits and choices in lieu of accidents.
Step 4: Ask Around
Fleet insurance is something that many new businesses don’t pay attention to until there’s an issue, but it should be part of a risk management strategy. Talk with insurance brokers and ask around about fleet insurance. Determine which kinds of business-related incidents might affect your fleet (e.g., crashes, break-ins, vandalism) and how you’d handle them if they happened.
Step 5: Consider Customising Coverages
The contents of your commercial fleet insurance policy vary based on where you’re registered, what vehicles you operate and how you use them. Some important considerations: Are your vehicles going to be used or operated exclusively in your home state? If so, you may not need extra coverage. Do any of your drivers have special needs? Perhaps they’re less experienced, or require additional training. This can affect your requirements for underinsured and uninsured motorist coverage, as well as medical coverage limits.
Step 6: Monitor Costs Closely
Don’t be penny-wise and pound-foolish when it comes to insurance. When developing your insurance strategy, don’t forget that high deductibles can lower your premium, but they also increase your risk if you have an accident. Monitor costs closely and continually look for ways to reduce your policy fees without jeopardising coverage. Take advantage of discounts or new technologies as they become available—these small changes could save you big money in the long run.
