Commercial businesses of all types retain a fleet of vehicles. From restaurant and caterers to construction companies, government agencies and hotels, commercial fleet is critical to the operations of many businesses.
Unfortunately, the average accident rate for commercial fleet is around 20%.1 Driving 20,000 miles or more annually, commercial fleet vehicles are at a greater risk of crashing than other vehicles on the road. According to a recent driver safety risk report, these crashes cost businesses more than $56 million annually.2
That’s where commercial fleet insurance comes in.
Allowing you to insure multiple vehicles under a single policy, commercial fleet insurance covers:
- Cars
- Vans
- Trucks
- Taxicabs
- Minibuses
- Tractor-trailers
- Construction vehicles
Commercial fleet insurance carriers will require a minimum of one to five vehicles in order to purchase a policy. The vehicles included on the policy do not have to be utilized for the same purpose. For example, vehicles used for sales purposes can be insured on the same policy as construction trucks.
FAQs on Commercial Fleet Insurance Coverage
Your commercial fleet insurance coverage will depend on the type of policy you procure, but can include the following coverages:
Liability coverage, uninsured motorist coverage, underinsured motorist coverage and physical damage coverage.
Physical damage coverage protects your fleet of vehicles against loss and damage with the following distinctions:
- Collision coverage offers protection against damage and loss in the event of an accident.
- Comprehensive coverage protects vehicles against damage or loss caused by something other than a collision, such as hitting an animal or theft.
- Specified cause of loss coverage protects against specified perils such as vandalism, hail or fire.
How much does Commercial Fleet Insurance Cost?
Commercial fleet insurance costs are based on the:
- Age and value of your vehicle. Used vehicles may be less expensive to insure, as they cost less to repair.
- Intended use of your vehicle. Vehicles that transport people and deliver goods to businesses are typically the most expensive to insure.
- Type of vehicle. Vans, SUVs and trucks are insured based on their vehicle class, i.e. light, medium and heavy-duty trucks.
- Policy options. The more comprehensive your policy, the more it will cost - and the more you’ll be covered in the event of an accident.
For more information on commercial fleet insurance, contact a HUB broker today. You can also learn more about HUB’s commercial trucking insurance services here.
1 https://www.automotive-fleet.com/303123/fleet-safety-metrics-reverse-negatively-accidents-increase
