Insuring Your Auto Fleet

The majority of business insurance claims come from their Auto Insurance.  The more vehicles a business has on the road, the more likely they are to have claims.  However, there are several things you can do as a business owner to reduce claims, get the best rates, and make sure you are properly insured.

First, what can you do to reduce claims? 

1. Hire quality employees and check their driving records before allowing them to drive company vehicles.  A general rule in insurance is that frequency leads to severity.  If a driver has a number of violations or accidents on their record, they are far more likely to be involved in a serious accident.  If someone is driving a vehicle with a company name on it and they injure another person, that person will likely come after the company rather than the individual because they perceive that is where they will get the most money.  So, hire people that represent your company well.
2. Maintain your vehicles.  Companies with large auto fleets will find that it is a pretty big expense to constantly change out tires, replace brakes, fix windshields, and service the engine of all those vehicles.  Therefore, they can get lazy in doing it or will put it off because of the expense involved.  This simple step can prevent major accidents from occurring.
3. Implement company policy for drivers.  There should be a zero-tolerance rule for driving under the influence of any drug, rules for cell phone use, speed limitations, seatbelt use, using a guide while backing, limiting distractions, and whatever else you feel is appropriate.

How do I get the best rates?

1. Reduce claims by implementing the above controls and showing the insurance company that you monitor and enforce them.
2. Show pictures of an organized, clean, well-maintained fleet of vehicles.  This shows the insurance company that you take pride in your assets and that you take the responsibility seriously to do everything you can to reduce risks.  If a loss control visit it performed and the insurance company finds a fleet of vehicles with cracked windshields, worn tires, safety violation issues, etc. they are unlikely to offer much credit on their insurance quote.
3. Stay with one insurance company for several years as long as they remain competitive with other markets.

How do I know if I am properly insured?

1. Place your insurance through a quality agent who knows your operations and is able to advise you on all aspects of Auto coverage.
2. Use the same insurance company for your Auto and General Liability insurance.  There are several gray areas as to which policy should respond in certain situations.  Using the same company will eliminate any questions as to who should pay the claims.
3. Make sure you are insuring your business property and property of others that you carry in your vehicles or on your trailers.
4. Purchase an Umbrella policy that you feel comfortable with so you know that you will have adequate limits in the event of a large claim.

These are only a few things to think about when trying to properly insure your company vehicles.  Please contact me if you have any concerns or questions about your Business Auto Policy.