What Is Business Fleet Auto Insurance? Everything to Know
What Is Business Fleet Auto Insurance?
Whether delivering goods or people or visiting a client, your employees are often at risk while traveling for work. Work-related car accidents are the first or second leading cause of death for employees in all major industry groups. These accidents cost businesses billions each year.
Although you can take precautions to ensure your drivers use safe driving practices on the road, you can’t control other drivers. As a result, you need to protect your business’s investment in its employees and vehicles. One way to do this is with business fleet auto insurance.
What is business fleet auto insurance? Read about your commercial auto insurance options and what these policies cover.
Commercial Auto Insurance Explained
Businesses with multiple vehicles and drivers can benefit from commercial car insurance. Your private car insurance won’t cover you if you use your vehicle for something in your job description.
There are several types of commercial car insurance, including:
- Business use
- Business use for multiple drivers
- Commercial use only
Small businesses can use business use to cover their vehicles and drivers. Commercial use only applies to vehicles used only for work activities.
Does your Business Qualify for Business Fleet Auto Insurance?
Fleet coverage often falls into two categories, small or mini fleets, and large fleets. Some insurance agencies might offer plans for fleets as small as two cars. But often, you need at least five vehicles, so search around for providers.
Many states require businesses to have liability coverage for their drivers and vehicles. An insurance agency like The Insurance Outlet will often have plans so you can meet these needs. These policies can be very flexible so you can add a vehicle or driver as your business grows.
Fleet Insurance Policy Coverage
Fleet insurance protects your vehicles under one policy rather than individual policies. These policies also provide flexibility for driver coverage. “All Driver” covers all drivers on all vehicles, or “Named driver” coverage that assigns drivers to specific vehicles.
Fleet insurance includes bodily liability coverage that covers you if one of your vehicles injures someone. They also have property damage liability that covers the cost for damage caused to personal property by one of your vehicles. Finally, a combined single limit liability provides a single limit for bodily and property liability.
States have specific requirements for the minimum liability coverage vehicles must carry. So check your state laws to stay compliant and avoid fines.
What Does Business Car Insurance Cost?
Business fleet auto insurance can be expensive. The cost will depend on the coverage options you choose. For example, an all-drivers policy covering drivers across all vehicles will be more expensive.
Besides policy options affecting premiums, other factors like vehicle age, type, and condition affect policies. Finally, an insurance agency will also consider the intended use of your vehicles. Businesses that use their vehicles more frequently often incur higher costs.
Choose the Best Insurance Policy for Your Fleet
Business fleet auto insurance is a convenient way to cover each driver and vehicle. Fleet auto insurance can be customizable to protect your small fleet or several fleets. An insurance policy can save your business costly fees to replace vehicles and pay injured employees’ medical bills.
Do you want to learn more about insurance coverage to protect your business from accidents? Check out the business section of our website for more articles like this one.
