What Types of Businesses Need Fleet Insurance?

Businesses that need fleet insurance include those that regularly use two or more vehicles, like those that focus on trucking deliveries, taxi services, construction and more. In addition to helping meet minimum auto insurance requirements, fleet insurance can be easier to manage, with all company vehicles protected under a single policy, and it may have lower insurance premiums.

Learn more about the types of businesses that need fleet insurance and how to get it.

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  9 Types of Businesses That Require Fleet Insurance

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  How To Get Fleet Insurance for Your Business

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  FAQs

9 Types of Businesses That Require Fleet Insurance

Businesses that use multiple cars for commercial purposes can benefit from fleet insurance, as every state outside of New Hampshire requires a minimum amount of liability coverage.^[1][2] Fleet insurance is a type of commercial auto coverage that protects all your vehicles — including cars, trucks, vans and specialized commercial vehicles — under one insurance provider’s policy.

While you can typically get a standard commercial auto policy to meet your state’s minimum requirements, fleet insurance may be more beneficial. These policies are flexible and can often be customized to meet the specific needs of a business. For example, you may not need cargo insurance if you run a business that strictly deals with the transportation of passengers instead of goods, like a taxi or rideshare service.

Since fleet insurance costs may be lower if you keep your fleet vehicles under one policy, businesses with more than one vehicle can benefit from buying this type of commercial coverage instead of getting multiple commercial auto policies.^[3] Below, we’ll cover several industries that are likely to use multiple vehicles and should consider fleet vehicle insurance.

1. Logistics and Delivery Companies

Logistics and delivery companies often use fleet vehicles to transport goods — such as food, beverages, equipment and retail products — to businesses and individuals. Depending on the scope of their business, they may require multiple vehicles to reach their destinations across vast areas, ranging from a single city to across state lines.

Most fleet insurance policies can include cargo coverage, which can help protect your business if one of your trucks or cargo vans is struck and the carried inventory is damaged.^[4]

Because deliveries may take your vehicles through inclement weather, you may want comprehensive coverage to insure your entire fleet against damaging hail. Additionally, collision coverage can protect you in case of an accident caused by an icy road. However, you should review your fleet insurance policy to confirm its coverages, as they may vary between policies.

2. Taxi and Ridesharing Services

Taxi companies typically have a fleet of vehicles in any given location to meet the demands of residents. Because taxi drivers regularly travel in residential or urban areas to get people where they need to go, they may need fleet insurance covering bodily injury to protect their business in case they get into an accident with another vehicle or pedestrian.

Ridesharing services might also require drivers to carry fleet insurance if they don’t already offer insurance coverage or their included coverage doesn’t meet their drivers’ needs. While rideshare services like Uber and Lyft offer certain levels of coverage at various stages of your shift, you may need fleet insurance to fill in any gaps in that coverage.^[5][6]

For example, Lyft does not provide liability coverage for drivers in New York City, so drivers in this area may need fleet insurance to meet their minimum auto insurance requirements.^[6]

3. Construction and Contracting Businesses

Construction and contracting businesses often need to insure multiple vehicles carrying people, materials and equipment to various jobsite locations. These vehicles often range from trucks that carry large amounts of steel or lumber to vans that carry specialized tools, individuals and permanently attached property, like ladders.

Fleet insurance can help construction and contracting businesses protect their vehicles under one policy while meeting insurance requirements. For example, a mechanical contractor that drives a van to install or repair an HVAC machine may get into a collision with another driver, which fleet insurance may be able to help cover.

4. Rental Car and Vehicle Leasing Companies

Rental car and vehicle leasing companies often have a few vehicles available at a time to give their customers options. Fleet insurance can protect your business from financial burdens if one or more of your cars are damaged by one of your customers or an employee. For example, fleet insurance can often reimburse you for damages or medical expenses if a customer gets into an accident on the road or an employee accidentally backs into one of your covered cars.

5. Corporate and Sales Teams

Corporate and sales teams often use company vehicles to transport employees to meetings, between corporate offices and to sales conferences. Fleet insurance can protect these vehicles and their employees if they get into an accident. Additionally, policies with comprehensive coverage typically include theft and vandalism as covered perils.

6. Health Care and Medical Companies

Ambulances, mobile clinics and vehicles to transport employees, patients and equipment all fall under potential fleets that health care and medical companies may use. Multiple vehicles are often necessary to meet the needs of a community, allowing you to perform tasks and assist multiple patients at one time. An accident may damage one of these critical vehicles, and fleet insurance can help cover the cost of repairs, helping your business get back to serving your community.

7. Utility and Service Providers

Utility and service providers are often vital to communities, covering a variety of industries. For example, fuel trucks may help resupply businesses in remote areas, trucks with cranes or buckets help repair broken electrical lines or out-of-reach infrastructure and dump trucks are commonly used as part of waste management or landscaping to remove debris.^[7] Fleet insurance can help these businesses protect their numerous vehicles under a single policy.

8. Event Management and Entertainment Services

Businesses that regularly host corporate events, sporting events, weddings and other types of entertainment may need a fleet of vehicles and benefit from fleet insurance. For example, a company that rents limos for high school proms or bachelor and bachelorette parties may want more than one vehicle to expand their availability. Fleet insurance can help protect your business, as a collision could result in a passenger injury and could become a financial burden.

9. Nonprofit Organizations and Community Services

Nonprofit organizations and community services use multiple vehicles for various services, such as transporting volunteers to clean up trash on a beach or bringing supplies and food to underprivileged communities. They may also be critical in assisting people after a natural disaster, such as bringing blankets and medical supplies to community members affected by a significant flood.

Fleet insurance can help cover your vehicles under a single policy, providing necessary coverage and peace of mind while your nonprofit focuses on its mission.

How To Get Fleet Insurance for Your Business

You’ll want to get quotes from three to five insurance companies to understand your range of options. Ensure you review what each of your prospective fleet insurance policies cover, as they may differ between insurers. You’ll likely need to provide information about each car in your fleet, including their mileage and how they’re used, alongside information about your business. Keep in mind that you’ll often need to provide this information one at a time, which can become tedious.

You can help speed up this process using an insurance marketplace like SmartFinancial. After answering a brief questionnaire, we’ll connect you with a licensed insurance agent to help you get the coverage your business needs for your commercial fleet. Click here to get a free commercial insurance quote today!