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5 Types of Coverages for Your Company Fleet Insurance

by Northern Life

Finding the right company fleet insurance for your business is not an easy feat. Of course, you’d want to get the best protection for your drivers and vehicles, but you also want to make sure that the premiums are within your budget. And with so many company fleet insurance benefits out in the market, how do you know which ones you need?

To help you with this decision, we’ve come up with five types of coverage for your company fleet insurance that you must have.

Third-Party Liability Coverage

Even the most careful of drivers will get into accidents or incidents. Third-party liability coverage comes into play when your driver is at fault, and the other party decides to file a claim against the company. Keep in mind that you will find yourself in many situations where legal implications are possible. Another motorist can sue your driver after an accident; a property owner can do the same if your car destroys anything inside their property. There are even occasions where you’ll get sued by your drivers.

Good third-party liability coverage accounts for many situations and even offers financial assistance for legal fees and any other costs related to defending yourself against third-party claims.

Property Damage Coverage

Suppose your vehicle gets damaged or lost due to the negligence and recklessness of other people. In that case, property damage coverage can give you compensation for the value of your vehicle and the contents inside.

Some may wonder why you need property damage coverage since the other party is supposed to pay for the damage if it’s their fault. While this is true, negotiations and investigations initiated by another insurance company will put the well-being of the other party over your own, so you can expect them to try to fight your claim or delay it as much as they can. In situations like these, you should have something in your insurance coverage if you need financial assistance immediately.

Accidental Benefits

Accidental benefits encompass all financial assistance necessary in an accident, regardless of fault. This provides financial compensation for medical treatment, lost wages, disability benefits, and even funeral expenses.

Uninsured Motorist Coverage

If you get into an accident, and the fault lies in the other party, it’s customary for the responsible driver to pay for damages. However, there are instances wherein the other motorist turns out to be uninsured. Even if your insurance coverage includes accidental benefits, this may not be enough to cover medical expenses and vehicle repairs.

If the responsible party doesn’t have insurance, you can use this coverage to protect your drivers and vehicles fully.

Comprehensive Coverage

This accounts for all incidents not covered above, including fire and extreme weather conditions. The difference between comprehensive coverage and property damage coverage is that comprehensive coverage accounts for situations outside of anyone’s control, meaning nobody is at fault.

The Insurance Coverage Must-Haves

Of course, there are more inclusions and benefits available nowadays, depending on which provider you approach. However, it’s best to start with these five coverages as it accounts for most situations that fleets deal with daily. As your company grows, you’ll want to look into more coverage and inclusion that fit your industry and the type of vehicles you own.