What Is Fleet Insurance and Why Every New Fleet Business Needs It

20th May 2022

New fleet business owners often find themselves confused about what is fleet insurance exactly and what it covers, why they need it, and whether they can avoid dealing with it altogether.

First of all, though, let’s cover what fleet insurance means in the first place. Fleet insurance is a type of business insurance policy geared toward businesses that use vehicles on the road, like delivery fleets and taxi companies.

Essentially, fleet insurance covers damage or injury to your vehicles and property (including other vehicles) and protects you against liability claims from drivers or passengers injured by your vehicles or from accidents involving your drivers.


Why Do All New Fleet Businesses Need Fleet Insurance?

Safety is the number one concern for any business. Every new fleet business needs to take safety into account and create a safe workplace and make sure that if anything were to happen at your business, there are insurance policies in place to cover all involved and their loss.

Having insurance for your employees is essential, but what about a company vehicle? Having an auto policy on a company vehicle will protect you, and your employee(s) should anything happen in or out of work-related driving.

In addition to insurance, fleet businesses must ensure compliance with all required permits and licenses. Operating without the proper authorizations can lead to severe legal penalties, including heavy fines and suspension of business activities. Partnering with professional service providers who can help with operator’s licence applications is a wise investment, as they guide you through the regulatory maze, ensuring your business adheres to all transportation laws and regulations. This not only protects your business from legal issues but also builds trust with your clients, who value professionalism and legitimacy.

The Different Types of Fleet Insurance Available to Your Business


Haulage And Courier Fleet Insurance

If you’re starting a Haulage and courier fleet business, you know that protecting your investment is important. However, to have an insurance company value your equipment and property, you’ll need to have a policy in place.

Talk with a provider before going into business so that they can give you advice on choosing insurance tailored to your business. Keeping up-to-date with changes within your industry is essential for keeping up with these changes and staying secure.


Hazardous Goods Fleet Insurance

This type of fleet insurance protects fleets if they are transporting hazardous goods. Keep in mind that not all trucks and drivers are allowed to transport these types of goods.

So, it is necessary to check on your area’s regulations before entering into a trucking company contract to ensure you will have commercial insurance for your protection.


Light Goods Fleet Insurance

Light goods are generally transported by a wheeled or tracked vehicle, such as cars, motorcycles, vans, and light trucks. Light goods insurance is necessary for all businesses that operate vehicles with a maximum authorized mass (MAM) over 3.5 tonnes.

Many drivers of light goods carry their vehicles with insurance provided by fleet-insurance providers, who can be contacted in advance of any incident to ensure you’re insured and covered.


Taxi Fleet Insurance

A taxi fleet insurance policy is a special type of business insurance tailored to smaller businesses with large fleets of vehicles.

Taxi companies are often family-owned and operated, sometimes without a full-time office staff. Therefore, business needs may be complex and unique in their own right. Such businesses may benefit from a specialized insurance program equally as flexible.


How Much Does Fleet Insurance Cost, And How Do You Get a Quote

You should first consider what your fleet vehicles’ needs are, i.e., how many cars do you have and what is their worth? Start by contacting several insurance companies and asking them for fleet insurance quotes.

Most of them will ask you a series of questions regarding your fleet vehicles, such as when they were made and how many miles they drive each year. After that, decide which policy is right for you and make sure to read all the fine print before signing up with an insurance company so that there are no surprises later on.