Fleet Insurance: A Business Owner’s Guide

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If you’re in the construction business like us, you know the value of reliable vehicles to keep your projects moving forward. Whether it’s hauling materials, transporting equipment, or getting your crew safely to and from job sites, having a fleet of vehicles is essential. But with great responsibility comes the need for great insurance coverage. That’s where comprehensive Fleet Insurance or Non-Fleet Commercial Auto Insurance comes into play.

What is Fleet Insurance?

Commercial Auto Insurance called Fleet Insurance is tailored for businesses with multiple vehicles. Instead of insuring each vehicle separately, Fleet Insurance enables you to protect them all under one business auto policy. This approach can save you time, money, and effort in contrast to handling distinct insurance policies for each vehicle.

Fleet Insurance is a type of Commercial Auto Insurance.

Commercial auto insurance offers coverage for vehicles utilized in business operations. However, how do insurers determine if your vehicles qualify as fleets?

  • Fleet Insurance:
    • Is designed to cover multiple vehicles owned by a single entity, such as a company or organization. These vehicles can include cars, trucks, vans, or any other type of commercial vehicle.
    • This type of insurance is ideal for businesses that own and operate a fleet of vehicles for various purposes, such as delivery companies, taxi services, or construction firms.
    • Typically offers cost savings compared to insuring each vehicle separately, as insurers often provide discounts for covering multiple vehicles under a single business auto policy.
    • It provides flexibility, as businesses can easily add or remove vehicles from the policy as their fleet size changes.

  • Non-Fleet Commercial Auto Insurance:
    • Non-Fleet Commercial Auto Insurance provides coverage for individual vehicles used for business purposes. This could include vehicles owned by a company, but it also extends to vehicles owned by employees and used for work-related activities.
    • This type of insurance is suitable for businesses that have fewer vehicles or those that don’t operate a large fleet. It covers vehicles such as cars, trucks, vans, and specialty vehicles used for business activities.
    • Non-Fleet Commercial Auto Insurance policies can be tailored to the specific needs of a business, including coverage for liability, collision, comprehensive, and other optional coverages.
    • It’s also important to note that Commercial Auto Insurance may be required by law in many jurisdictions for vehicles used for business purposes, ensuring compliance with legal regulations.

While both provide coverage for vehicles used for business purposes, Fleet Insurance is tailored for businesses with multiple vehicles, offering cost savings and flexibility, whereas Non-Fleet Commercial Auto Insurance provides coverage for individual vehicles used for business activities, accommodating businesses with smaller fleets or specific insurance needs for each vehicle.

How Many Vehicles for Fleet Insurance?

While the exact number of vehicles needed varies, most insurers consider around five or more vehicles to constitute a fleet.

Determining factors include the type of vehicles, industry, and insurer policies. Some insurers may define fleets with as few as two or three vehicles, while others might require more. 

For smaller businesses or industries with specialized vehicles, even a small number of vehicles may be considered a fleet if they are all used for business purposes. Conversely, construction businesses with large-scale transportation operations, a fleet could consist of dozens or even hundreds of vehicles.

Ultimately, whether your vehicles qualify as a fleet depends on insurer criteria and your business’s specific requirements. Consulting with one of Leif’s Construction Risk Advisors can help identify the best insurance solution tailored to your fleet size and operational needs.

How much is Fleet Insurance?

The cost of any Commercial Auto policy can vary significantly depending on several factors:

  • Number of Vehicles: Fleet Insurance typically covers multiple vehicles under a single policy, whereas Non-Fleet Commercial Auto Insurance covers individual vehicles. Fleets may offer cost savings compared to insuring each vehicle separately, as insurers often provide discounts for covering multiple vehicles.

  • Usage: The way vehicles are used can impact insurance costs. Fleet vehicles used for high-risk activities or in hazardous environments may incur higher premiums compared to those used for less risky purposes.

  • Type of Vehicles: The types of vehicles in the fleet can also affect insurance costs. Specialized vehicles or those with higher values may result in higher premiums.

  • Coverage Needs: Commercial Auto Insurance offers various coverage options, such as liability, collision, comprehensive, and more. The extent of coverage required can influence the cost of insurance.
  • Claims History: The claims history of the fleet or individual vehicles can impact insurance premiums. A history of accidents or claims may result in higher premiums.

  • Location: The location where the vehicles are primarily operated and stored can affect insurance costs due to factors such as local regulations, traffic patterns, and crime rates.

  • Discounts and Incentives: Insurance providers may offer discounts or incentives for business auto policies based on factors such as safety measures, driver training programs, or loyalty.

In general, fleets may offer cost savings compared to insuring each vehicle individually under Commercial Auto Insurance. However, the actual cost difference between them depends on the specific circumstances of the business, including the factors mentioned above.

Safety focused contractors receive more discounts.  

Business owners who prioritize safety can qualify for significant discounts on insurance premiums. But how can you prove to insurers that your operation is safer than average? One effective method is by implementing fleet management software like T3 Technology.

With T3 technology or fleet management software in place, you’re likely to see a decrease in the number of insurance claims, showcasing your commitment of safety to insurance carriers.

This technology offers documentation of accidents and provides real-time insights into issues like equipment theft, maintenance delays, major breakdowns, and unsafe driving behavior.

Real-time insights help mitigate risk by allowing you to:

  • Utilize objective footage to settle claims and resolve disputes
  • Predict and address mechanical issues before they escalate
  • Provide targeted training to improve driver behavior
  • Enhance overall operational efficiency

Given these benefits, shouldn’t your insurance rates reflect your commitment to safety?

We think so! Contact a Leif Construction Risk Advisor to get lower insurance rates today!

How to Get Fleet Insurance?

Contact a Construction Risk Advisor at Leif and we’ll gather information about your vehicles, drivers, and business operations to present a complete risk profile to insurers. 

This may include details such as vehicle make and model, driver license information, driving history, and the types of construction work your fleet is involved in.

Once we’ve gathered your information, we’ll request quotes from multiple top-rated insurers to compare coverage options and prices. Based on your safe driving history and the fleet management software installed, we can help lower your premiums up to 15%.

When choosing a Commercial Auto policy, it’s important to consider factors such as coverage limits, deductibles, and any additional features or endorsements that may be beneficial for your business. Leif’s Construction Risk Advisors will take you through our consultative process to ensure that you get the right coverage for your needs.

In conclusion, Fleet Insurance is a valuable tool for construction businesses looking to protect multiple vehicles, drivers, and assets. By understanding your commercial auto policies, and how to lower your premiums by using fleet management software, you can make informed decisions, lower your insurance rates, and keep your projects on track. Safe driving!

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