subject: Fleet Insurance - Take What Is Relevant For Your Business [print this page] Insurance is a subject that is often avoided by people as they feel it is laced with jargon that they will not be able to understand. Constant exposure to many insurance service providers with their respective plans has only served to confuse people and they generally procrastinate taking the policy.
If you are running a fleet of vehicles, you cannot afford to be so complacent and casual. You need to take the right fleet insurance and though most insurance companies will offer you a standard policy that covers you against most of the common risks, you need to talk to the insurance provider and get coverage against specific risks that your business may be subjected to. You have to take care that the insurance covers the vehicles and the drivers adequately.
The three types of insurance available are:
a) Insurance which is restricted to third-party coverage only
b) Comprehensive Insurance
c) Insurance that covers third-party, fire and theft
Third party insurance coverage is that which protects your business from any claims made by individuals not connected to your business. For example, if your vehicle is involved in an accident due to the fault of your driver, then the insurance company will offer protection to you and your business against the claims made by the affected person. Generally, businesses take this insurance policy only because it is a mandatory legal requirement.
The next in demand is the one that provides protection against third-party, fire and theft. As is evident from the policy name, the protection offered is against the most common causes of loss that occurs to a business owner and is therefore taken by most entrepreneurs.
It is the comprehensive insurance cover that offers protection against a host of risks like accidents, natural disasters, riots and vandalism incidents, thefts and many more that is ideal for the business but thanks to its high premium is not always sought after by business owners. Instead they prefer to take cover against some of the risks more relevant from their business perspective so that they do not have to pay the high premium associated with the coverage against all risks.
The good news is that many of the fleet insurance companies will be able to provide you cover that is customised to your requirement so that you pay a lesser premium. It is also possible to get necessary extensions to the policy when you require them from the insurance service provider. The extensions normally offered are as under:
i) Cover for a breakdown
ii) Cover for legal expenses insurance
iii) Cover against windscreen damage
iv) Cover for courtesy cars
These extensions are provided by the insurance companies to their customers at no cost.
Other factors influencing the premium are the age and driving history of the individuals in charge of the vehicles. It is therefore a good idea to choose drivers who have had a good record and who are middle aged as they are considered relatively safe drivers by insurance companies.
by: Neil Anderson
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