Fleet Insurance is a Motor insurance product designed to offer businesses flexibility in covering multiple vehicles and multiple drivers under one policy and as such is considered much more efficient, cost effective and easier to manage than arranging numerous different insurance policies to cover vehicles and drivers on an individual basis. A fleet can be small or large but usually a minimum of three vehicles is needed for this type of insurance. Vehicle types can also range from cars and small vans to lorries and HGV’s (Heavy Goods Vehicles) used to transport goods.
It is flexible in that cover can be tailored to suit the needs of the business: from minimum coverage required by law such as Third Party liability for injury or death and damage caused to property, to covering employees using their own vehicles in connection with the business.
A Motor Fleet policy typically covers the following:
- Loss of or damage to vehicles caused by theft, fire, natural catastrophes and other unexpected causes
- Damage to the vehicles whilst being driven on the road as well as any injury to the driver if they are driving on company business
- Third Party injury or death and damage caused to their property
- Tools belonging to the company and/or stock and goods whilst in transit in the vehicle
Fleet insurance can also be further classified to include public or private hire usage (for private drivers or taxis), haulage insurance for longer distance transportation of goods and courier services (covering localised multi-drop hire and reward business).Since there are so many cover variations, it is important to understand your business needs fully: taking into account fleet size, types of vehicles, business activity and frequency of use: as well as understanding who will be driving which vehicles. Seeking the expertise of an insurance professional can help in arranging the most suitable cover to ensure that you are correctly insured and paying a premium that truly reflects your risk.