Important Insurance Tips for Your Growing Fleet Business

Strong Tie Insurance May 18, 2020 Commercial Truck Insurance

From the day your business first began, you’ve dreamt of seeing it grow and flourish. As you reach more customers and make more use of company vehicles, your need for the appropriate commercial vehicle insurance also grows. If your company grows enough in the right direction, you may need to step away from regular commercial insurance to commercial fleet insurance.

Whether your company utilizes delivery trucks, semi-trucks, or even garbage trucks, you need to not only make sure you’re operating within the legal limits of your state’s laws, but also that your business is fully protected.

What Constitutes a Fleet?

If your company has more than 15 vehicles registered under its name or you’ve purchased more than five vehicles in a single year, you may be required to carry California fleet auto insurance. While this might seem like an easy distinction to understand, your insurance carrier can also decide if your company’s vehicle collection is considered a fleet or not.

Once you meet the necessary requirements, you’ll get a fleet number that must be displayed on all of your company’s fleet vehicles.

What Does Commercial Fleet Insurance Cover?

Commercial fleet insurance is similar to regular commercial vehicle insurance that protects your business and its vehicles. Fleet insurance provides the necessary liability coverage to all of your company’s vehicles under a single account instead of having multiple policies.

California fleet insurance requires an appropriate amount of collision and liability coverage to meet the state’s minimum coverage laws. There are coverage options beyond the minimum that can significantly protect your company. 

From uninsured motorists to roadside assistance to comprehensive coverage and more, commercial fleet insurance can cover a multitude of areas. Since every business is different and has unique needs, it’s crucial to get the right kind of coverage for your business.

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Protect Your Growing Business

As you increase the number of vehicles in your fleet, you don’t want to forget to examine your insurance needs. The coverage you purchased when you only had a few vehicles may not be enough for your ever-increasing fleet.

Auto Liability

Having more vehicles in the fleet means having more people in charge of driving those vehicles. While you may have a flawless driving record and do your best to only hire the safest drivers on the road, more people behind the wheel means a higher risk of an accident.

If one of your team members is at fault for an accident, causes damage, or injures someone while on the job, you need enough insurance to cover the accident. You want to make sure that your commercial fleet insurance is sufficiently able to cover the damage.

Physical Damage

Physical damage coverage can protect your vehicles in the case that they are damaged. The damage could come from being in an accident, but it could also be due to things like vandalism, theft, fire, falling objects, and more. You don’t want to run into a situation where damage to one or more of your vehicles hurts your business.

Cargo Insurance

Make sure that you have enough cargo insurance to cover any accidents that might happen. If one of your drivers is in an accident that destroys everything they were hauling, it could mean disaster. If your driver is hauling equipment for your business, you’ll have to replace it before you can move forward. The delay could cost your company clients and business. If you’re hauling something under contract, you’ll be on the hook to replace that payload.

Pollution Insurance

If your company is at risk of causing environmental damage due to an accident, you may want to consider adding pollution coverage. If you’re carrying something like hazardous materials and are in an accident, you’re not only responsible for cleaning up the spill, but for any damage done to the environment. Pollution insurance helps cover these costs.

Roadside Assistance

Since your company depends on things moving efficiently, a broken-down vehicle could cause significant problems. Most insurance companies can offer insurance quotes for roadside assistance. This coverage provides an immediate response if a company vehicle breaks down and needs a little help.

Saving Money on Your Commercial Fleet Insurance

As your business grows, tons of costs go up to match your expansion. While you can’t skimp on keeping the necessary commercial insurance on your vehicles, you can look for ways to reduce costs.

Understand How Insurance Quotes Are Created

Saving money on your California fleet auto insurance starts by understanding how prices are created. Knowing which factors impact your price the most helps you make decisions to bring costs down. For example, you might decide it’s worth upgrading some of your trucks or hiring safer drivers for an overall lower insurance quote.

Here are some of the major factors used to generate your commercial insurance quote:

  • Types of coverage you want

  • Kind of cargo you haul

  • Where you store and deliver cargo

  • Models and number of vehicles in your fleet

  • Driving records of those who drive your trucks

  • Your company’s safety and inspection history

Understand the Types of Fleet Insurance You Need

One area where many businesses lose money is by not having the right kind of coverage. It’s easy to overpay for fleet insurance by having elements in your coverage that you don’t ultimately need.

It might seem like there is no such thing as too much coverage, but it is possible. For example, you might purchase a policy that bundles hazardous material insurance into your plan. If you don’t haul dangerous material, you’re paying for something you don’t use.

Your best bet is to have an honest conversation with your insurance provider about what your company does and what you expect to do as you continue to grow. Ask your carrier questions about everything in your policy to understand what it covers and how it is used.

Enjoy the Growth Without Going Unprotected

Make sure to take time to celebrate your company’s growth. At the same time, realize that more in-depth operations can mean greater risks. As your company grows, so should your commercial fleet insurance. Take some time to evaluate your needs, shop around for the best coverage, and maintain the protection that your company needs. Now is not the time to lose it all because you didn’t consider your commercial insurance needs.