As a transportation insurance agent, it's important that you offer all the types of fleet coverage your clients might need to protect themselves against potential losses or damages. While not all clients will need every type of coverage, there's often overlap. Instead of specializing in a single type of fleet insurance, it can be extremely beneficial to offer all of them.

What Is Fleet Coverage?

Fleet coverage is a type of insurance specifically designed for businesses that operate a fleet of vehicles, and it can provide a range of benefits to help keep your clients' businesses running smoothly.

Fleet coverage offers a number of unique benefits to any commercial transportation company that regularly operates more than one vehicle. Even small companies buy fleet coverage, and it can end up saving them a lot of money. Overall, the more vehicles a company operates, the greater the potential savings are. Many clients don't realize they could easily qualify for bundled fleet insurance, which can lower their operating costs. If you can be the one to introduce this concept to them, there's a good chance they'll be grateful.

While not everyone needs fleet coverage, it's good to have a basic understanding of the fundamental parts that make up a whole policy.

Liability Coverage

Liability coverage is probably the most essential part of any type of automobile insurance. It's nothing fancy, but it's essential for avoiding costly lawsuits that can be crushing for your clients' businesses.

Liability insurance protects the driver and company if they're found at fault for an accident. Liability costs can include damages to other vehicles as well as injuries to other drivers or passengers. Liability insurance is required by law, so to ensure it doesn't lapse, automatic billing is a must.

Collision Coverage

Collision coverage is probably the second-most-important type of coverage behind Liability. It covers damage to vehicles your clients own and operate. The damage can be from a collision with another vehicle or a single-vehicle accident.

Collision coverage typically has a deductible; the higher the deductible, the lower the premium.

Collision coverage is optional in most states, but lenders might require it if your clients are financing or leasing their fleets. It's important to carefully consider the value of the vehicle and the likelihood of it being involved in an accident when deciding whether to buy collision coverage, and if so, how much.

Comprehensive Coverage

Comprehensive coverage provides protection for a wide range of circumstances, including theft, natural disasters and vandalism. This coverage can be especially important for transportation businesses that operate in areas prone to these types of events.

Comprehensive coverage isn't required in most states, but it can be a great option for your clients if they have a newer fleet or operate in risky areas. Companies that routinely deliver in high-crime areas can benefit from comprehensive insurance by recouping losses resulting from theft.

Cargo Coverage

If your clients' transportation businesses transport valuable goods or materials, cargo coverage is essential. Cargo coverage typically covers losses or damage to in-transit goods or materials that results from an accident, theft or other unforeseen circumstances. It can also cover the costs of replacing or repairing the cargo and legal fees that may be incurred as a result of a claim.

Maintenance and Repair Coverage

Maintenance and repair coverage can help to cover the costs of routine maintenance and repairs for your clients' fleet of vehicles, helping to reduce the financial burden on the business and ensuring that their vehicles are as safe as possible.

While no client will need all of these types of coverage for a fleet, plenty will need most of these types. By learning about each of these options, you can become a more proficient agent and communicate better with your clients.

Bundling certain types of coverage together can be great for your clients and your bottom line. It can both encourage your clients to buy more coverage and cut costs on the essential coverage that they absolutely need. It's an easy win-win for everyone involved.

By ensuring that your clients' fleet is adequately covered in these key areas, you can help protect their transportation businesses against potential losses and keep operations running smoothly.