If you own a business with multiple vehicles used for business purposes, commercial fleet insurance is definitely something you should consider. In Ontario, fleet insurance can be applied to businesses with five or more vehicles. A fleet policy makes it possible to insure multiple vehicles – from cars, minibuses, trucks and taxi’s – on a single insurance policy. Because a fleet insurance policy covers all your vehicles, you can save money from having them individually insured.

The greatest benefit of fleet insurance is that it allows the insurance company to group rate like vehicles and potentially allow for discounts. This eliminates much of the worry and stress of handling a different insurance policy for each different vehicle. Some fleets will have a particular endorsement that allows like vehicles to be automatically covered. There are restrictions and requirements in order for overage to apply but this is very useful for businesses that have many vehicles that change frequently throughout the year.

As with any commercial vehicle policy there are different levels of insurance you can get with fleet coverage starting with third party liability, collision, and comprehensive coverage.

Third party liability is required by law in order to have a vehicle on the road but it only protects the other party for both property damage and bodily image – there is no coverage for yourself nor the vehicle you own.

Collision covers the owned vehicle for damage caused by a collision. This does NOT cover medical or legal fees. It will also not cover the vehicle in cases of damage caused by anything other than a collision.

Comprehensive on the other hand covers a long list of perils that can cause damage or destroy your vehicle. It will also provide coverage for medical and legal fees. For example if one of your vehicles was vandalized and had the mirrors broken off and a few dents put in it you would be covered. This wouldn’t be covered if you just had third party liability and collision.

There are also a number of other endorsements (or optional coverages) that you can choose. What is available will depend on the insurance company and the type of business.

Talk to your broker for more information.

A couple of things to keep in mind as you look into whether or not a fleet insurance policy makes sense for your business:

Every employee that will be driving one of the insured vehicles must be listed on the fleet policy. Failure to do so could result in a claim being denied. The number of vehicles, vehicle types, individual driver history and experience, how the vehicles are stored when not in use, and the presence of alarm systems in the vehicles can all affect premiums and depending on exactly what kind of vehicles you are insuring the drivers may need a special operator’s license.

If the fleet insurance policy will be used for vehicles that are transporting goods, it is also important to purchase insurance that will cover the costs of the goods in the event that they are lost, stolen, or damaged in the event of an accident or a breakdown. Many fleet insurance policies will provide such an option

Update your broker regarding any relevant changes including the number of vehicles you own and who is driving them. You’ll also want to notify your broker if the nature of your business changes and keep them up to date with your address and contact information.

If you’re not sure about whether or not you need fleet insurance talk to your broker first. They’ll be able to help get you a policy that protects your assets while staying within budget.