How Fleet Insurance Works
If your business operates multiple vehicles, commercial fleet insurance may be a more efficient and cost-effective option than insuring each vehicle separately.
Securing fleet insurance, following fleet management best practices and using telematics can save you money and protect lives.
Tailored to you
Do-it-yourself insurance might initially seem like an easy way to go, but any time you save on the front end could be lost in the long run. You may sustain substantial losses due to coverage gaps, lost discounts and higher accident rates.
Fleet insurance allows eligible business vehicles to be managed under a single policy, simplifying administration as your fleet grows.
Types of insurance plans include, but aren’t limited to:
Scheduled fleet policies, which are good for smaller fleets that have few changes in size or activity over the year
Mileage-based policies, which often attract fleets of 15 vehicles or more that run longer hauls
Gross revenue policies, which may appeal to companies that earn most of their revenue from fleet activity
Ontario requires a minimum of $200,000 in third-party liability coverage, although most businesses purchase at least $1 million—and often more—to better protect against serious claims. But you can choose higher limits. Liability insurance covers claims alleging injury and/or property damage caused by your business.
You can also get coverage for collisions and/or comprehensive damage from things like fires, theft, vandalism and other non-collision incidents. This can help pay for repairs or replacements for your vehicles. Glass damage may be covered under comprehensive coverage, subject to your policy's terms and deductible.
You can also integrate other coverage with your fleet insurance. Your broker may also recommend complementary coverages such as:
Cargo insurance (for businesses transporting goods)
Commercial umbrella or excess liability
Environmental liability
Crime insurance
Cyber insurance
Commercial property insurance
Ask about the full range of complementary products and discounts for purchasing more than one type of coverage.
Ontario commercial auto policies also include mandatory uninsured automobile coverage, and additional endorsements may be available depending on your needs.
Power in numbers
You can save money with fleet insurance. Premiums are normally calculated on a group basis, which can reduce costs. A single policy applies to the entire fleet, creating efficiency by reducing paperwork. Adding or swapping vehicles during the policy year is very manageable. Authorized, properly licensed employees and permitted drivers can typically operate covered vehicles, subject to the policy terms.
If you are cost-conscious, you may consider a higher deductible. But a better way to keep costs down is to reduce accidents through driver safety.
Many businesses also find that driver recognition programs and ongoing safety training help reduce collisions and claims.
The insurance company will look at your firm’s driving record, typically over the past three years. They'll want to know about your safety manuals, vehicle operation policies and drivers’ motor vehicle records. The better their records and yours, the more insurable your fleet will be and the better your price will be.
Safety is within your grasp
Many insurers offer value-added fleet risk management services, including telematics programs, driver training resources and reporting tools.
The insurance company may also provide distracted driving prevention, as well as data analysis and reporting tools. This can help your company enforce driving protocols and improve efficiency.
These comprehensive fleet management solutions use online platforms to help you manage and report important fleet data in the way that best suits your company.
With the right insurance, you can protect your fleet, employees, and business.
Have Questions?
Every business is different. Factors such as the number of vehicles, vehicle types, radius of operation, driver experience and industry all affect how a fleet policy is structured and priced. An insurance broker can help tailor coverage to your specific operation.
If you would like to learn more, contact TG Group today at info@tg-group.ca or 519-370-2006. We’re here to help you understand your options and ensure you have the protection that’s right for you.
