How Does Fleet Insurance Work?

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Fleet insurance works by providing coverage for bodily injury liability along with property damage to your fleet Insurance is always a complicated matter, and fleet insurance can be especially so. However, if you are a fleet manager, it is vital that you know the different types of fleet insurance and how they work. Your fleet absolutely must have fleet insurance, not only because it is a legal requirement but because it is impossible to succeed and thrive without it. Luckily, this article is here to serve as your guide to what to look for when picking your fleet insurance. 

What Does Fleet Insurance Cover? 

Of course, every insurance policy is different and is going to cover different things. However, there are three types of coverage that every insurance policy should cover in some way. They are: 

  • Bodily Injury Liability Coverage: This pays for any injuries or death if the accident is the fleet
  • Property Damage Liability Coverage: This coverage protects your company if one of your vehicles damages another person’s vehicle or property. 
  • Combined Single Limit (CSL) Coverage: The same amount of coverage applies whether there is bodily injury or property damage.  

Additional Fleet Insurance Coverage To Look For

When searching for fleet insurance, basic coverage may not be enough to cut it. Insurers offer a variety of coverage options to cover all of a fleet’s needs. There are many types of coverage that you should look out for depending on what kind of coverage your business may need. You may even look at upgrading some of the coverage listed above. Some of these options for coverage may include: 

  • Increase Physical Damage Coverage: If your assets are worth a lot more than the typical fleet’s, you may consider increasing your physical damage coverage
  • Increased Liability Coverage: No matter how well you train your drivers,  someone will make a mistake at some point. Ensure you are covered with increased liability coverage.
  • Product Insurance: Make sure your cargo is covered with product insurance. 
  • Roadside Assistance: If your drivers travel miles all over the country, they may not be within reach when they need help. This is where roadside assistance may be of benefit to you. 
  • Collision Damage: Collision damage is a necessity, as it protects your fleet whenever an accident occurs, so you do not have to pay for expensive repairs. 
  • Uninsured Motorist: Did you know that 13% of drivers do not have insurance? Uninsured motorist protection protects you when one of these drivers is involved in an accident with you. 
  • Physical Damage: Other cars aren’t the only risk to your vehicle. Weather, theft, and vandalism also put your car at risk, and this coverage will protect you in those circumstances. 

These types of coverage do not come standard in every fleet insurance package, but many businesses seek them out as they are useful in extenuating circumstances. 

Learn More About Fleet Insurance

Our blog has a plethora of information regarding fleet insurance. Check out our glossary entry on fleet insurance for more information on the basics. Or see our blog article, How to Choose Fleet Insurance to Fit Your Company’s Needs, for more tips on how to choose a fleet insurance policy for your fleet. If you’re ever looking to lower your fleet insurance, our technology is sure to have your back. Check out everything we have to offer on our website!