Four Things Your Company Doesn't Know About Fleet Insurance

Fleet Insurance can be tricky and if you don't know how it works, it can be risky for your company and your drivers. Does your company even need fleet insurance? What does it protect? What about the drivers? What doesn't fleet insurance include? Below are the answers to these questions and more so that you can make sure your fleet is properly insured before they venture out on the road.

1. A "Fleet" Can Be One Car

You may need fleet insurance even though your "fleet" includes just one car. More than anything else, insurance companies focus on how a car is used. Covering the wrong automobile for that wrong objective can lead to claim refusal. If you are using your vehicle for private use, you'll need a standard personal car insurance plan. If not, maybe you need fleet coverage.

2. Your Fleet Needs To Be Insured Based On Specifics

Automobiles that are used for any work reasons should be placed on fleet or commercial car insurance policies. The vehicle doesn't need to be a big truck, a service van or other vehicle created specifically for commercial use. It can be one car. Odds are your insurance agent's personal vehicle is included with a commercial auto policy - or a fleet policy. Fleet insurance is typically just like personal car insurance, nevertheless you will find exclusions.

For instance, if your vehicle is damaged carrying an insecure load, they will not be liable for the damage to the vehicle or injury to any persons. So make sure your load is secured properly. There may also be various guidelines for commercial automobiles that travel past state lines. These vehicles must also adhere to federal insurance regulations. Call your agent for details.

Fleet insurance on trailers isn't needed because trailers aren't self-propelled. The coverage of the automobile towing the trailer is usually adequately insured for the trailer as well. However, trailers should have collision and comprehensive protection separate from other vehicles. In a commercial setting these are usually covered on a stated value basis.

3. Drivers Need To Be Added To Fleet Insurance Policies

It's important to list drivers with a fleet insurance policy. If a driver isn't listed, there may not be coverage in a claim. If your fleet drivers turnover, don't forget to keep the driver lists up to date. Commercial fleet auto insurance drivers are usually added without much underwriting.

While precise guidelines change from business to business for the most part your drivers have to be at least twenty five, licensed to drive the automobile under consideration and have a good driving record. A ticket or two is generally no problem; however a really bad record may disqualify a driver. Drivers over the age of seventy-four might be unconditionally declined too. Check with your agent for more details.

4. Fleet Insurance Does NOT Cover Your Gear

Keep in mind fleet car insurance just covers automobiles. It doesn't include resources, gear, replacement add-ons or other things not factory set up and completely bolted down. Your equipment and tools must be protected individually through another policy. This is achieved through commercial property and casualty insurance known as "inland marine." Inland marine insurance indemnifies loss to moving or movable property and is an outgrowth of ocean marine insurance.

Historically, ocean marine insurance held the transporter responsible for property loss before, during, and after the completion of the voyage. Inland marine policies became known as "floaters" since the property to which coverage was originally extended was essentially "floating."

The coverage has grown to include property that just involves an element of transportation. One bonus tip not related to fleet insurance: it doesn't cover problems caused by you or your employees. This is addressed by commercial general liability or GL insurance. Your insurance agent or broker will help you find the proper insurance coverage you have to keep you protected at work.

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