Owning a fleet business can be very rewarding, but there are dangers and risks involved in this type of business. Owning a fleet of commercial vehicles is an investment and an obligation. The vehicles must be kept in good driving condition, the drivers must be kept safe, and state and federal regulations must be adhered to. One major obligation is to carry insurance on all vehicles.
Commercial Auto Insurance
Massachusetts trucking businesses are required to carry commercial auto insurance policies. Since this is a legal requirement, businesses that do not insure their vehicles can face substantial fines and penalties along with the risk of liability when accidents happen. It is known that insuring your fleet vehicles is not so simple.
There is not a one size fits all commercial vehicle policy, and there are different types of policies to choose from. A good insurance agent can guide the business owner through the process of purchasing a policy that is best suited to their company’s needs and situation.
Some Policies That Are Available For Business Auto Insurance
The types of commercial auto insurance policies available include:
- Coverage for Personal Injury that can cover injuries to the driver and passengers
- Coverage for Liability for Bodily Injury that may cover injuries to people outside of the vehicle in an accident
- Coverage for Collision and Comprehensive damages for damage to a vehicle
- Coverage for Property Damage Liabilities for coverage caused by the vehicle insured
- Coverage for Uninsured and Underinsured Motorists. This covers damages and injuries caused by another driver who is not insured.
- Insurance for Hired and Non-Owned Vehicles and Drivers. This special type of insurance covers rented vehicles and employees who use personal vehicles for their work.
A specialized insurance agent dealing in commercial auto insurance can guide fleet owners to the correct combination of policies to meet their business needs.
Calculating Insurance Cost
Commercial insurance cost for policies is calculated taking these factors into consideration:
- How many vehicles are on the policy
- The models and makes of the vehicles and their ages.
- The storage facility where the vehicles are kept when not in use
- The kind of driving the vehicles are used for
- The yearly miles vehicles are driven
- The driving records of the employees
- The company record for accidents and liability claims for the past few years
In addition to these factors, the business owner might use an insurance company that has special insurance discount programs like ones for safe driving, multiple vehicles, and so on.
Additional Ways to Safeguard a Fleet Business
In addition to being adequately insured business owners can protect their businesses with these policies:
- Have repair kits with every vehicle for minor damage and durable body kits that can be removed and replaced.
- Make use of tracking technology to know where vehicles are at all times.
- Consider using remote disable and unlock features to deter theft and handle the loss of keys in the field.
- Thoroughly vet and screen all prospective drivers, including their driving history. Hiring the right drivers is very important.
- Use a fleet tracking app so the vehicle routes, fuel used, etc. are easier to track.
- Make sure to have regular inspections and maintenance for all vehicles to avoid mechanical problems on the road.
- Follow fleet health and safety regulations.
The wise fleet business owner takes every precaution to keep their drivers and vehicles safe. When precautions are taken in advance, there are fewer emergencies and fewer lost hours. Good planning, accurate scheduling, and choosing the best routes for trips make a great difference in cost management and employee retention.
Sudarsan Chakraborty is a professional Blogger and blog writer. He lives and breathes in the blogging industry. He regularly writes on Widetopics to keep all the readers updated with the latest facts on wide range of topics.