Commercial Motor Insurance: What You Need and How Your Broker Can Help

Get cover for your company vehicles.

Any kind of automotive vehicle used for business purposes should be insured commercially. Specialist policies for business-use vehicles ensure that all parties are covered: the driver, the company, the vehicle, and any other vehicles or people involved with an accident. For most business owners, having their vehicles and drivers on the road is crucial to operations. Quality commercial motor insurance should therefore be a priority.

As with any insurance, it’s important to get the best. And what “the best” is can change from company to company. Each business has unique needs and risk factors specific to their services and their sector, so will need different policies. The following will help clarify what you need from a commercial motor policy and how your broker can help arrange the best solution for your circumstances.

Features of a commercial motor policy

One of the primary risks covered by this type of insurance is, of course, damage to a vehicle if it gets in an accident. In many cases, having wheels on the road is very important to the running of a business. Depending on the field, cars, vans, trucks, and other vehicles can be indispensable. Accidents happen even with the most trusted drivers, and the ability to get your vehicles back up and running as soon as possible is an asset. Good commercial motor insurance will enable that to happen.

Another aspect of this cover is liability for damage to third party property. This alleviates the stress that comes with the possibility of a company-owned vehicle coming into contact with someone’s Ferrari.

The other main purpose of commercial motor insurance is to protect against loss from theft. Being able to replace a stolen vehicle quickly and with minimal fuss makes life easier for any company.

Some policy aspects may not be standard across all insurance companies. This makes it worthwhile having an experienced broker who can assist with clarifying options and the best solutions.

Excess-free windscreen cover is a great benefit and it’s a good idea to ensure this is included under your policy. Automatic cover for newly purchased vehicles is another important part of a policy which will ensure you are fully covered until you get a chance to inform your broker of the purchase. Adding loss of use cover (which pays for a rental vehicle) serves many companies well too, particularly couriers and other businesses highly reliant on their vehicles. Some insurers also allow you to insure your vehicles as a fleet, which is a beneficial option for large organisations with many vehicles.

Something else to consider is having your unregistered vehicles, like forklifts, insured under a commercial motor policy. If you must drive such a vehicle on public roads between insured locations, and/or to load other vehicles for example, having it insured under your motor policy will cover your liability for damage to third parties whilst it’s on the road.

Broker benefits

Discussing your requirements with an experienced insurance broker is the best way to find the right commercial motor insurance. Here’s why!

Firstly, a broker will be able to tell you exactly what each policy covers. They will know where you can get the extras mentioned above, and can also advise you on which are most necessary for your operations. This advice is invaluable. It prevents you from overspending on policies that include cover superfluous to your needs, or from finding yourself in a tough situation due to gaps in your insurance. Brokers like those that make up the Runacres team are experts in risk analysis, enabling them to offer informed advice. They can guide you in deciding what level of cover is appropriate for your business, balanced against the cost of premiums.

Using a broker makes the entire process smoother. They will explain the details of a particular policy in ways that are simple to understand and help you through purchasing and setting up your insurance. When it comes to insuring a varied-vehicle fleet, the task can be overwhelming. Brokers have the experience and knowledge to make it easy.

One of the most helpful and stress-reducing benefits that comes with using a broker for your commercial motor insurance is the assistance provided when it is time to make a claim. A vehicle being involved in an accident is stressful for everyone. There may be an injured driver or passenger to be concerned about, a tow truck to be arranged, and work to be postponed. If a vehicle is stolen, there are police reports to be made and alternatives to be found so jobs can continue. In either of these situations, you don’t want the added task of sorting out an insurance claim.

A broker will handle the lodgement of a claim with your insurer, taking that job almost entirely off your to-do list. Additionally, they will act as your advocate to ensure that you get everything to which you are entitled. If you are not an insurance expert, it can be difficult to interpret and navigate a policy which may put you at a disadvantage. Brokers ensure that you receive everything available to you.

No commercial vehicle should be on the road without insurance. If you are navigating the murky waters of commercial motor insurance and need some help deciding what you need and who to get it from, get in touch with the Runacres team. We can help businesses around New Zealand assess and mitigate risk with the right insurance policies.