If 2020 has taught us anything it is that circumstances can change – Frequently!
So when was the last time you reviewed your insurance? – Do you know what you are insured for? – Do you understand the Cover? Are you sure you are saving money on your premiums where you can? Fleet Insurance is one such Policy that should be reviewed carefully each year.
Risk Management
Insurance is one way to transfer risk, but prevention of a loss is always better than making a claim. Are all your vehicles parked at the one location? – What happens if there is a Fire, Flood, Hailstorm etc? – Could your fleet be wiped out in one event? If you have the ability to separate your risk do so, perhaps consider looking at storing vehicles at a number of safe locations where possible.
Value of your Vehicles – The Sum insured
Most Premiums are based on the sums insured in your schedule, however, just because there is a value listed it is not necessarily the set value you will receive in the event of a claim, unless it is specifically says “Agreed Value”. Many policies will note a sum insured and then also say or Market Value whichever is the lesser so as an example, if you have a truck on a listed on a policy with a sum insured for $100,000 and it is only worth $75,000 why pay the extra premium on the $25,000 you are not going to receive? Each year make sure you review the sums insured listed on your schedule and make sure you understand if you have Agreed Value or not.
Lay Up Cover
If your vehicles are not operating then use “Lay Up” – Vehicles can be added to Lay Up and taken Off Lay Up throughout the year as business demands changed. Lay Up allows the vehicles to still have some cover in place for things like theft, fire and other perils at a set Lay-up Address, however, does not provide cover for any on road risk or whilst the vehicle is away from the listed Lay Up Address. This can save a lot of costs to the business, especially if you are experiencing a temporary down turn.
Optional Covers
Many policies also offer a variety of optional covers – these can include (but are not limited to) Hire Vehicles, Down Time Payments, Finance Gap Payments, Windscreen Coverage, etc Make sure you understand the Covers you take out and what Options are available to you and ensure the Policy is tailored to you and your needs
Drivers of Vehicles
Does your Policy cover you for young or inexperienced drivers? What is considered a Young or inexperienced Driver – If it does cover them is there an additional excess that applies in the event of a claim?
You may wish to take into consideration the effect a young or inexperienced driver may have to your premiums or what additional excesses could apply depending on which staff you have driving certain vehicles
Radius Limits on Vehicles
What radius limit do you need? This is a rating factor for most insurers when looking at vehicles over 2 tonne.
Do you normally operate withing 200km of the home base but on a few occasions you go outside the radius? What are the penalties if you have an accident outside the disclosed radius? Would you be covered?
As always engage with a Professional Insurance Broker who can help you navigate complex policies like Motor Fleet
