Find Out What Your Fleet Insurance Should Include

With the recent growth of on-demand delivery services like Uber and Postmates, it’s clear that our economy is shifting toward one that requires more delivery drivers than ever before.

With that being said, if you’re a business owner wondering what is fleet insurance and are looking to take advantage of this trend, then you’ll need to get fleet insurance for your company’s vehicles.

Knowing what should be included in this type of insurance can help you manage any risk factors associated with having drivers working for your company. Read on to find out what should be included in your fleet insurance package.

Vehicle Replacement Cost

No matter how conscientious you are, accidents can and do happen. Vehicles are expensive to repair, whether from a bump or an assault. It is not uncommon for repairs of even a minor accident to run well over what you bargained for.

If you don’t have vehicle replacement coverage on your policy, it could mean thousands of pounds out of pocket to replace your car or truck if it is totalled in an accident. The right kind of policy will pay up to 80% of the value of your car or truck at the time it was originally purchased—which is often more than what you paid for it—up to its fair market value when totalled.

Legal Coverage

This protects you from any legal liability for damage or injury caused by an employee driving one of your company vehicles. Liability protection is often referred to as coverage for bodily injury and property damage.

These costs will be paid directly to others without regard to fault, including any amounts associated with medical bills, lost wages, and pain and suffering. Physical damage protection: If a car driven by an employee is damaged while on company business, physical damage protection pays out those expenses.

Business Interruption Coverage

This protection covers lost revenue due to circumstances beyond your control, such as a fire at a third-party warehouse you contract with. Without business interruption coverage, payments may not come until repairs are complete or even after they’ve been made.

If you don’t have enough cash flow to cover expenses while a repair is made, you may risk going out of business. Business Interruption Coverage will reimburse you for lost revenue until repairs are completed.

Deductible Options

Your deductible is how much you’re responsible for before your insurance kicks in. A higher deductible can save you money monthly, but it also increases the amount of risk you bear—you may have to pay for some expenses out of pocket.

If you keep a high deductible, consider increasing your liability coverage. That way, if an accident does occur, at least you won’t have to worry about major expenses coming out of pocket. The higher deductibles and lower premiums associated with liability coverage make sense for small businesses with limited financial resources which are only concerned with catastrophic losses; larger companies tend to view their policies more holistically and are willing to accept some costs as part of doing business.

Contingent Business Interruption

Suppose you’re a taxi driver. If you buy contingent business interruption coverage and your vehicle is stolen, you can keep driving customers to their destinations while it’s being repaired. Plus, it covers lost income when repairs take longer than expected.

Your car won’t always be insured for drive-time periods when there isn’t an actual customer in the vehicle – and if it’s not, who pays for your gas? Business interruption coverage helps drivers get by during these temporary downtimes, which can help drivers make more money overall over time. It allows them to work as much as they want, instead of just as much as they can afford while their vehicle is repaired.