What makes a good fleet insurance policy?
In the UK there are many different fleet insurance options with insurance providers offering various levels of cover. This can seem overwhelming at first, but lorry fleet insurance companies are great at breaking it down for you so that you get the best policy to suit your business needs.
When researching different levels of cover, it’s important to make sure that you are selecting policies that match the risks posed in your particular line of work. Failing to have the correct level of cover could put your business in serious financial jeopardy if, for example, a third party were to take you to court for accidental damages. This is why it is important to take responsibility for ensuring you have the best possible protection should the worst happen.
Individual vehicle cover vs entire fleet cover
Getting an individual insurance policy for each vehicle in your fleet can end up being more costly than taking out a fleet policy. These policies usually range from 2 vehicles up to around 500 for most UK fleet insurance providers. Fleet policies can be tailored to the size and level of risk of your business so that you’re covered in the event of any mishaps with members of the public or employees. There are levels of cover to suit any business, from a flower delivery company to a scaffolding company you can rest easy knowing you are adequately covered.
If you employ staff
If your business employs staff then it is a legal requirement for you to have employer’s liability cover as part of your wider fleet insurance policy. This will cover you for any medical costs, legal expenses, loss of income and other related damages if an employee becomes ill or injured as a result of their work. £5 million is the minimum level of cover offered and the amount of cover you need will depend on the size of your business and level of risk involved in your line of work. This is an essential level of cover to have as fleet business pose a higher level of risk than other businesses due to working with large machinery and heavy loads.
If you transport goods
Getting covered for theft, loss and damage is key for businesses transporting goods, especially for third parties. Goods in transit insurance covers all items transported in the course of business in case a vehicle is broken into or items become damaged in a road accident. Couriers for retailers or moving van fleets would really benefit from this level of cover. Imagine transporting someone’s art collection when they’re moving house and it all gets ruined in a road collision! Goods in transit insurance would cover you for the cost of replacing their art collection and without this cover, forking up for it yourself could be a serious loss for your business.
If you deal with the public
Whilst public liability insurance isn’t legally required in the UK, it is handy for businesses interacting with members of the public and their property. Imagine one of your drivers accidentally reversed into someone’s brand new car. Public liability insurance will cover the cost of replacing it and more. You can get cover ranging from £1 million to £10 million depending on the size of your business and level of risk. This will cover you for third party medical costs, on-going care, loss of earnings and legal expenses which could soon stack up unless you are adequately covered. The amount of cover may seem huge but when you consider the costs involved should your business cause damage to a member of the public or their property, it’s a small fee to protect your business and its assets.
If you need to transport goods abroad
If you transport goods or provide your services abroad then you need to make sure that you are covered for this. If your vehicles have a gross plated weight of over 3.5 tonnes and an unladen weight of over 1.5 tonnes then you will also need an operator’s licence in order for your insurance to be valid. For businesses travelling overseas, you will require a standard international licence to allow transportation of your own goods as well as the goods of others in the UK and abroad. A standard national licence will allow the transportation of your own goods overseas and those of others just in the UK alone. A restricted licence will allow for transporting only your own goods but not the goods of others. The correct type of licence for you depends on your business activity, to find out more visit the VOSA website.
Combining multiple layers of cover under one single policy can save you money on your lorry fleet insurance premiums. For example, a retail courier company may want to combine public liability cover along with goods in transit cover on a single policy as they deal with the public and heavy loads as well as goods from other companies.
You can reduce the cost of premiums further by taking action to minimise potential risk factors in your day-to-day business activity. You can form a protective maintenance plan, including regular health and safety training and vehicle maintenance checks to prevent the potential for accident and injury. Insurance providers reward businesses that implement risk management plans, so don’t miss out on possible savings.
It is important to remember that all policies can be tailored to suit the risks specific to your business and industry sector. If you feel you are lacking cover in any areas, it is essential to flag this up and make alterations to your policy as soon as possible. You can always check with industry trade bodies to make sure you are in keeping with the standards set for your particular industry. When choosing your fleet insurance, ensure you have considered these factors so that you have the appropriate level of cover for your business.
These 6 considerations will help you to build the best fleet insurance policy for your business. If you’re looking for HGV insurance for your fleet, please do not hesitate to get in touch today. Give us a call on 0333 577 0331 or contact us.