How can Motor Fleet Insurance help your small business?

As a small business where all hands are on deck and time is limited the benefits of a motor fleet insurance policy may not just be limited to the cost savings you can make.

It is often assumed that a business needs a large selection of vehicles to truly benefit from a motor fleet insurance policy, but this is not the case. Mark McKenna, Manager of Bluedrop Services Motor Fleet Insurance, discusses the complete list of benefits that your small business may be missing out on.

Quite simply if you have three or more vehicles then it will be beneficial for you to invest in fleet insurance. The benefits will far outweigh the desire to simply save money and you will soon benefit from flexibility, simplicity and reduced premiums.

It should be noted that not all policies are the same and it is recommended that you should always discuss your requirements with a specialist fleet broker who can advise on which options will be best suited for your business niche.

Fast and ever-changing technology is also impacting upon the benefits of motor fleet insurance, risk management and the cost savings that can be achieved. We would recommend that you discuss such options with your specialist broker to find out the possibilities of further increasing your business benefits.

So, who can benefit from Motor Fleet Insurance?

Basically, any business small to large, can benefit from Motor Fleet Insurance.

  • A small business where directors or managers have company cars
  • Business with sales teams
  • Home visit healthcare teams
  • Taxi firms/private hire
  • Couriers/delivery-based business
  • Logistics/haulage companies
  • Self-drive hire companies

Motor fleet insurance can prove beneficial to any business or industry type from a small fleet requirement right up to those of a large haulage firm. Most benefits will increase along with the size of the fleet, but all are available for everyone.

The benefits of fleet insurance:

  • Its easy. Fleet insurance is much easier to keep track of with only one renewal date and one policy to think about. Without a Motor Fleet policy, you would need to insure each vehicle separately as well as keeping track of each renewal date.
  • Saves money. Insuring all your vehicles under one policy will save money compared to insuring them each individually. One policy for all your vehicles works out much cheaper than individual insurance due to the bulk discount. In addition to this, once you are ‘fleet rated’ you can benefit from lower premiums.
  • Saves time. There can be a fair amount of administration involved in sorting out insurance for each vehicle in your business. By having only one policy to renew you can save countless hours and concentrate on the running of your business. Time is money, especially in a small business.
  • Its flexible. Additional vehicles and drivers can easily be added or taken off your policy throughout the year and many insurance companies will not charge for this facility. You also have the flexibility of insuring any type or mix of vehicles under the same policy.
  • Any driver flexibility. If it is beneficial to your business, you can opt for an ‘any driver’ policy which will allow drivers to change vehicle and drive whatever is available at short notice. It allows much more flexibility for businesses taking on new staff, temporary staff or covering shifts.
  • Named driver savings. Alternatively, if you have little need for such flexibility and wish to save further costs then specifying named drivers will allow you to benefit from further discounts.
  • Declaration basis. Depending on the type of declaration basis you choose you can either update changes to your schedule of vehicles quarterly, half yearly or annually. Therefore, the policy will automatically include any vehicles purchased, acquired or removed without having to notify your insurer. Such flexibility avoids the risk of overlooking vehicles which would not otherwise be protected.
  • Additional layers of cover can be added. Rather than taking out new policies to cover additional needs, with fleet insurance you can select additional layers of cover as and when needed. Such layers may include breakdown assistance, goods in transit, or tools insurance.
  • Special vehicles can be included. Vehicles such as tractors, JCB’s, excavators or dumpers can be accommodated on the policy rather than insuring them separately.
  • Flexible payment options. Payments can be made in flexible, interest-free instalments allowing you to plan your expenses in advance which you can comfortably afford.
  • Fast claims. One of the benefits of fleet insurance is that when a claim is made, the process is much smoother and more efficient. Having an effective and experienced claims management team on your side to guide you through the process is priceless.
  • Transfer of risk. When compared to self-insurance the risk is transferred to the insurer who has systems in place to settle and monitor claims and negotiate with third party insurers on your behalf.

How a broker can help

Acting as an extension to your business a specialist broker can help to analyse your fleet and needs as a business, ensuring that you have the correct policies in place for each area of your fleet.

Your Duty of Care as an employer involves ensuring all of your employers that drive for business purposes are appropriately insured, licensed and fit to drive. However, surprisingly a large proportion of drivers are still driving uninsured on the roads for business purposes.

Whether you operate a very small fleet or a combination of occasional grey fleet drivers, a complete schedule of Heavy Goods Vehicles, facilitate on the road sales representatives, or indeed offer hire and reward services, you need a policy to cover all intricacies.

It is important to continually address and review the fleet insurance policies you have in place and the cost of your fleet to your business. Developing a strong relationship with a specialist broker who will understand your business and focus on getting you the better policy to suit your needs will help you to do this.

A specialist insurance broker will already have built strong relationships with the right insurers and know exactly how to present your business to them. Your fleet may change numerous times throughout the year and a valued relationship will help you to automate such changes to your policy quickly, with ease and often at no additional cost.

If you require further advice, please read our informative guide to fleet insurance.

Written by Mark McKenna.

Mark is Motor Fleet Broker for Bluedrop Services, specialising in Motor Fleet Insurance and offers advice and tailored fleet support to customers managing Motor Fleets.