A reader posted this comment after one of our posts. We think there are some good points on how one can be innovative in fleet management.
Some industries require a fleet of vehicles by nature and will need a flexible motor fleet insurance policy to ensure that all drivers and fleet vehicles have sufficient cover during their day-to-day activities. The key difference between this and a commercial vehicle insurance policy is the additional responsibility of managing the vehicles and drivers.
Because of the nature of some businesses, employees may be required to be out on the road for hundreds of miles each day, increasing the likelihood that they will be involved in accidents from time to time.
A recent study from the Fleet Support Group showed that a large proportion of companies regularly see 30% of their drivers involved in road traffic accidents each year. Ultimately the number of accidents which fleets are involved in can result in hundreds of thousands in pounds of loose.
Insurance is a necessity, but premiums for companies that drive many miles is likely to be higher as the risk of accidents increases. Fleets can reduce the insurance excess costs by effective accident management and efficient training for drivers, managing third party costs and driver duty of care.
Fleet insurance is normally for a company that has 3 or more vehicles, and it means that 1 policy covers all vehicles and drivers – this saves the company having to insure each vehicle separately. The company is responsible for ensuring that all drivers fit the criteria of the policy (eg it could state that all drivers must be over 25 or that all drivers have a totally clean driving licence etc).
The company then pays one annual premium to get all vehicles covered, and any of their drivers can drive any of the vehicles. If the company purchases a new vehicle or gets rid of an existing vehicle then they advise the insurance company and the policy is amended. For a very large company that has a big turnover of vehicles, they will notify the insurer quarterly of any changes, rather than notifying every single amendment. Basically, a fleet policy is used where several motor policies would otherwise need to be issued. Visit http://www.arkwrightinsurance.co.uk for more info.