Whether your business does catering or construction, you rely on a commercial auto fleet to get the job done. Fleets can include many types of vehicles, but they all need comprehensive car insurance to stay covered in case of accidents, damage, or liability claims.
But what exactly does commercial fleet insurance cover, and how can you choose the best policy for your business? In this guide, we’ll break down what commercial fleet insurance is, how it works, and what coverages you should consider to ensure maximum protection for your business.
What Is Commercial Fleet Insurance (& Why Do You Need It)?
If you own multiple vehicles for business purposes, you’ll want to invest in a commercial fleet insurance policy rather than insuring each vehicle separately. This type of policy is designed for businesses that own five or more vehicles and need efficient, cost-effective coverage for their entire fleet.
A commercial fleet insurance policy allows business owners to manage insurance for all company vehicles under one policy, making it easier to handle claims, add or remove vehicles, and simplify premium payments.
Additionally, if employees use personal vehicles for work-related duties, it’s crucial to discuss with your insurance agent whether additional coverage is required.
What Does Commercial Fleet Insurance Cover?
Instead of a one-size-fits-all approach, commercial fleet insurance is made up of different types of insurance that work together to protect your vehicles, drivers, and business from financial loss.
The policies you choose will depend on factors like how the vehicles in your fleet are used, the types of cargo they carry, and the level of risk your industry presents.
Below are some of the most common coverage options that businesses include in their commercial fleet insurance policy.
Collision Coverage
Accidents happen, and collision coverage helps cover the cost of repairing or replacing a company vehicle if it’s involved in an accident with another vehicle or an object (such as a tree, guardrail, or mailbox). Since commercial vehicles are often more expensive to repair, enhanced coverage is highly recommended.
Comprehensive Coverage
While collision coverage covers crashes, comprehensive coverage protects against other damages like fire, theft, vandalism, flooding, or hail damage. Despite its name, comprehensive coverage doesn’t cover every type of incident, so it’s important to pair it with other policies for complete protection.
Liability Insurance
Every business owner needs liability coverage to protect against property damage and bodily injury claims.
- Property Damage Liability (PDL) covers the cost of damages caused to someone else’s property by one of your fleet vehicles.
- Bodily Injury Liability (BIL) covers medical expenses and legal fees if your driver is responsible for injuring another party in an accident.
Since businesses operate in a highly litigious environment, liability insurance is a must-have to avoid paying out-of-pocket for lawsuits and settlements.
Personal Injury Protection (PIP)
As a business owner, it’s wise to invest in more than the minimum required for Personal Injury Protection (PIP). Commercial fleet vehicles are larger and heavier than standard cars, increasing the risk of serious injury in an accident. While workers’ compensation may cover medical expenses in some cases, additional PIP coverage helps protect employees and passengers in case of an accident.
Uninsured Motorist Coverage
According to the Insurance Research Council, approximately 1 in 5 Florida drivers (20.4%) are uninsured, putting your business vehicles at risk. If a company vehicle is hit by an uninsured or underinsured driver, this coverage helps pay for damages and medical costs, ensuring your business isn’t left to handle the expenses alone.
Additional Fleet Insurance Policies
Depending on your business operations, adding extra coverage to your commercial fleet insurance policy can provide a stronger safety net.
- Towing Reimbursement – Covers towing costs if a fleet vehicle becomes undrivable.
- Rental Reimbursement – Helps cover the cost of a rental vehicle while a company car is being repaired.
- New Vehicle Replacement – Pays for a brand-new model of the same vehicle if the original is totaled.
- Gap Insurance – Covers the difference between the amount owed on a vehicle loan and the insurance payout if the vehicle is totaled.
- Roadside Assistance – Offers jump-starts, flat tire assistance, fuel delivery, and lockout services to keep fleet vehicles moving.
How Much Does Commercial Fleet Insurance Cost?
The cost of commercial fleet insurance varies based on several factors, including the number of vehicles, business type, industry risk level, and driving history of employees.
On average, policies can range from $500 to $5,000 per year per vehicle, with high-risk industries like construction, delivery services, and trucking paying higher premiums. Fleet safety measures, driver training, and security systems can help lower costs by reducing risk.
Working with an independent insurance agent can help you compare quotes and find the most cost-effective commercial fleet insurance policy for your business.
Protect Your Fleet With DSI
If you’re looking for commercial fleet insurance in Florida, Darr Schackow Insurance can help you find the best coverage at the best price. Our knowledgeable agents will review your existing policies, identify potential gaps, and provide customized insurance solutions for your fleet.
Get the protection your business deserves. Contact Darr Schackow Insurance today for a free commercial fleet insurance quote and expert guidance tailored to your needs.