Home Insurance Who Needs Commercial Fleet Insurance and What Does it Cover ?

Who Needs Commercial Fleet Insurance and What Does it Cover ?

by Lalithaa

Whether you own a car rental, construction, landscaping, security, or delivery business, if you use a fleet of commercial vehicles to conduct your daily operations, you should have commercial fleet insurance to safeguard your most valuable assets. Read on to learn what commercial fleet insurance is, who needs it, and what it covers.

What is Commercial Fleet Insurance?

Commercial fleet insurance is an insurance policy type that covers a fleet of business vehicles, or multiple business vehicles, under one plan. Instead of gathering and keeping track of several – or sometimes dozens – of vehicle insurance policies, you only need to track and renew one, regardless of how many drivers the company employs. 

How it Works

Commercial fleet insurance is available for both small and large fleets of vehicles. 

Small fleets, or mini fleets, are typically used by local trade businesses. These businesses use a handful of vehicles to conduct their daily operations and would benefit from small fleet coverage.

Large fleets refer tobusinesses that use dozens to hundreds of vehicles to conduct their daily operations, such as taxi companies. A significant benefit of commercial fleet insurance for companies with large fleets of vehicles is large fleet insurance quotes, which are much more economical than opting for many individual insurance plans. 

Who Needs Commercial Fleet Insurance?

Many businesses spanning various industries rely on trucks, vans, cars, or heavy good vehicles to conduct their operations regularly. 

Any business that owns more than a few commercial vehicles to conduct its daily operations will benefit from having commercial fleet insurance. There are many benefits to using commercial fleet insurance, from keeping the business safe to lightening the amount of paperwork your company needs to deal with. 

What Constitutes a Commercial Vehicle?

By definition, a commercial vehicle is any type of motor vehicle used to transport goods or passengers who pay for its service. If your vehicle meets the following criteria, it’s considered a commercial vehicle when:

  • It’s titled or registered to a company
  • It’s used for business purposes under an individual’s name, which would be considered the sole proprietor
  • It’s a leased vehicle that’s leased under the name of the financial institution that owns it
  • It’s used on a public highway in interstate commerce
  • It exceeds a gross vehicle weight rating of 10,000 lbs. or more
  • It’s designed to transport nine or more passengers, including the driver
  • It’s used to transport hazardous material

If your business vehicles meet any of the above criteria, they’re considered commercial vehicles and can be covered under commercial fleet insurance. 

What Does Commercial Fleet Insurance Cover? 

While most commercial fleet insurance plans are focused on liability coverage, other types also offer business protection. Consider looking for plans that include the specialized and liability coverage your business needs. Physical damage, uninsured motorist, and collision coverage are a few types of commercial fleet insurance policies that can keep your business and its assets protected in various ways.

If you’re looking for commercial fleet insurance for your company, steer clear of traditional insurance policies and contact Rideshur to learn more about personalized plans from a company that’s innovating the way fleet insurance works.