If you run a company that has multiple commercial vehicles, then you need fleet insurance. Insuring each of these vehicles individually with a commercial auto insurance policy can be exceptionally costly and impractical. Instead, by opting for a fleet insurance policy you can save yourself and your company thousands of dollars while still ensuring you have the right amount of coverage for your business vehicles.
Fleet insurance offers business owners the option to allow employees to drive any vehicle at any time, while also protecting the company's financial investment. It provides a range of coverage, including damage caused to other people's property by an employee driving a company vehicle.
This insurance policy is offered to businesses that own a minimum of five vehicles and use these vehicles for business purposes. For instance, a handyman company may own 12 vans that are dispatched to homes throughout their service area. Or, a florist may have a set of vans they use to make deliveries.
Fleet insurance provides uniformity and allows companies that own and operate a number of commercial vehicles to protect themselves against a range of perils. It's important to note that fleet vehicles do not all have to be the same type of vehicle, or be used in the same way, to be considered part of the fleet.
While there are a number of factors that can impact fleet insurance premiums, including loss ratio, vehicle usage and driver history, one of the primary benefits of this policy is that it's typically less costly than insuring vehicles individually. Indeed, it allows your insurance company to offer a group rate and potentially allow for discounts. Some fleets will have a particular endorsement that allows like vehicles to be automatically covered. For instance, if your plumbing company grows and you need to buy more trucks for your employees to use, these vehicles will be added onto your existing policy. Of course, there are restrictions and requirements in order for the policy to apply, but it is still very useful for businesses.
Otherwise, fleet insurance is very similar to commercial vehicle insurance. You can choose what level of coverage is right for your business, and your vehicles will be protected in the event of damage or destruction caused by a covered event. Typically, a fleet insurance policy also covers damages associated with liability.
As with any commercial vehicle policy, there are different levels of insurance you can get with fleet coverage. However, it's the law across Canada that you need proper insurance while operating any vehicle within the fleet at any time.
Required by law, third-party liability offers coverage against claims of property damage or injury incurred against a third-party. For instance, if one of your drivers backed into a client's garage and broke the garage door, you could be held legally responsible. This policy will protect your legal fees should a suit be filed against you, as well as any damages or settlements that you have to pay as a result of the suit.
Also considered mandatory insurance, accident benefits coverage protects the driver and passengers of a vehicle that has been in a collision, regardless as to who is at fault. This is different from third-party liability, which stipulates that the driver is at fault. Accident benefits coverage usually includes:
This type of coverage helps pay to repair or replace your car if it's damaged in an accident with another vehicle or an object—such as a fence, guard rail or tree. If you're leasing or financing your car, collision is usually required by the lender. However, if you own your car (or fleet, in this instance), then collision is optional coverage.
The main difference between collision and comprehensive coverage is that while the former helps you repair or replace your vehicle if it's damaged in a collision with a vehicle or object, comprehensive offers financial protection in the event your vehicle is damaged in an incident that is not a collision. Usually, this refers to damage from a fire, vandalism or falling objects like hail.
While a basic fleet Policy is similar to a basic commercial auto insurance policy, there are endorsements you can opt to add-on to your policy for even greater protection. A few endorsements you could add on to your fleet insurance policy includes:
If you own an auto body shop, automotive repair garage or similar business where you have customer vehicles in your possession at any time, then you should have garage auto insurance. This policy covers your customers' vehicles while they are in your care, control or custody.
Also called transportation replacement coverage, if you're found (or one of your employees is found) at fault in an automobile accident, this policy will provide you with a rental vehicle while your truck, van or SUV is being repaired. Like any endorsement, this policy comes with limits that one of our dedicated Krywolt Insurance brokers will walk you through.
This endorsement is essential for protecting your business from the damaging impacts of your first accident. No matter how careful you and your employees are, one accident can seriously impact your insurance premiums—unless you have accident forgiveness. If you find yourself in an accident, or one of your employees gets in an accident, and you make a claim, this policy acts as if the accident never happened in the first place.
If you think you're ready to take the plunge and inquire about a fleet insurance quote, then our experts at Krywolt Insurance can help. To prepare for obtaining your quote, you will need to provide details about your vehicles to your broker or carrier. Some questions you should be prepared to answer include:
Filing a fleet insurance claim is similar to filing a normal commercial car insurance claim. File the claim immediately with your insurance company following an accident. Most insurers offer online forms where you can file the claim at any time. Ensure you include pertinent information, and be sure to get the insurance details of the other driver/drivers involved. If a police report was filed, be sure to include that information as well.
There are numerous benefits to opting for fleet insurance, rather than insuring each of your commercial vehicles individually. It's significantly more efficient to have fleet insurance, as it covers all business vehicles on a single policy regardless of vehicle type, number of drivers, or intended use. This is especially helpful if you use one vehicle in multiple capacities, such as for both delivery of goods and transport of people.
If administrative work is not for you, then fleet insurance is the way to go. With this policy, you'll spend less time submitting paperwork when it comes to renewing your policy. Think about how long it would take you to renew the insurance on 100 taxis—compared to doing all of them at once.
Finally, one of the main draws of fleet insurance is that it usually saves business owners money. Because your assets are quite valuable—100 cars to one—usually insurance companies are more willing to negotiate on rates.
Calgary fleet insurance can be obtained through your insurer. It is designed to cover accidents and liabilities for all vehicles used in the scope of your business operations. Examples of vehicles that can be insured with fleet insurance includes:
The cost of fleet insurance varies depending on your carrier, the size of your business and how many vehicles are in your fleet. Additionally, there are a range of other factors that may impact the cost of your insurance policy, including:
Yes. As long as your employees are properly insured, one of the best advantages of having fleet insurance is that any of your employees can operate any of your vehicles. This makes it much easier for your business operations to run smoothly, compared to listing specific employees with specific cars, were you to insure each vehicle individually.
As a business owner, the best way to ensure your employees' safety and reduce the likelihood of having to make a claim is by ensuring safety comes first. The safety of your drivers directly impacts the security of your vehicle assets, other drivers and pedestrians, and ultimately, your company's bottom line. The following are a few tips to ensure your employees are driving as safely as possible: