Fleet insurance protects against accidents and losses that happen to your company’s fleet of vehicles, but it does not protect against everything.
No type of insurance covers all losses and damages, so it’s important to know what your insurance policy does not cover as well as what it does cover.
Here are some things you need to know about fleet insurance and what is not covered by fleet insurance.
Injury To Driver
Some companies will pay for hospital bills incurred by a driver hurt in an accident as long as that driver is performing company business. If it turns out that your employee was off-duty when he got injured, you’re probably out of luck.
If their injuries come from a truck they own, you might have to cover those costs on your own. On the other hand, if they get hurt while doing maintenance on a truck owned by you or your company, the chances are good that the company’s fleet insurance policy will pay his medical expenses.
Third-Party Damage Or Theft
Fleet insurance covers damage or theft to any of your company’s vehicles. Fleet policies typically cover both third-party coverage, which means damage to someone else’s vehicle, property, or people while your fleet is being driven by a driver who is at fault.
They also include comprehensive and collision coverage, which means that you are covered if one of your vehicles has been stolen or damaged by accident.
You may also be covered for mechanical breakdown insurance if there is a problem with one of your vehicles that can’t be repaired on location. If you have commercial vehicle insurance, the chances are good that it will pay for certain damages.
Normal Vehicle Wear And Tear
Like any insurance policy, motor fleet insurance is not an all-encompassing coverage plan. If you are part of a fleet and require insurance, it’s important to remember that not everything is covered. Standard policies may not include normal vehicle wear and tear; it’s up to you to research your policy’s fine print to determine what you will be responsible for should something happen to your vehicle.
For example, say a portion of your tire rips off while driving down the highway at 80 Km/h—the damage is certainly not normal wear and tear (normal wear being things like rusting), but whether or not your policy covers it will depend on how good (or bad) an adjuster you have.
Damage Under The Influence
While insurance covers damages to your fleet vehicle if you are intoxicated, it does not cover personal injuries caused by being drunk. The cost of insurance for both business owners and employees can be overwhelming, particularly for small businesses
Often, it is too much money or just not worth it altogether. Many business owners need a vehicle with a commercial license plate or people who have had their driver’s license suspended.
Damage Caused By Poor Maintenance
If your driver hits a pothole, causing your vehicle to break down, that is not covered by fleet insurance. And if poor maintenance causes that same issue, it will not be covered. That’s why it’s so important to follow your manufacturer’s recommendations when it comes to servicing your vehicle.
As soon as you notice something off about its performance or appearance, take it in for service immediately—that way, any issues are fixed before they lead to more damage down the road. Remember: If something goes wrong, you don’t want to think twice about who will pay for it.
