With an estimated 968,000 registered commercial vehicles in Canada (StatsCan), many businesses rely on them every day. Ranging from company cars to trucks and vans with specialised functions, commercial vehicles have their own risks, and require proper protection. This is especially important for businesses with commercial fleets.
Commercial fleets are not limited to large-scale vehicle operations; any company owning at least five powered vehicles has a fleet. As the number of vehicles increases, so do the potential risks. Companies are liable whether their business vehicles are being operated by an owner, employee, or volunteer. Without appropriate coverage, a business could be facing a large loss in the event of a collision, injury, or death.
Beneficially, insuring a fleet is often cheaper and more convenient than insuring each vehicle individually. Companies may also qualify for lower premiums with a good record and risk management programs that can include:
- Full compliance with all motor vehicle regulations
- Formalised and documented preventative maintenance
- Clear and comprehensive policies and procedures
- Carefully screened and well-trained drivers
Taking steps to reduce risk helps commercial fleets avoid incidents in the first place, and also be prepared should any occur.
It is important to note that fleet insurance applies only to vehicles owned by the company. For businesses where employees are required to use their own vehicles, the company also faces potential liability. In these cases, a business cannot insure an employee’s personal vehicle, but Non-Owned Auto Liability Insurance coverage—which, in most cases, is part of the commercial general liability portion of the property/casualty policy where qualified—will protect the business as a whole from a potential liability lawsuit.
The risks facing commercial fleets are as varied as the fleets themselves; each business has a unique group of vehicles to serve its individual needs. Protecting your business starts with making sure you have the appropriate coverage. Call your BrokerLink Broker today to discuss your current coverage, or to get help finding the right insurance coverage for your commercial fleet needs.