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Expanding a small business can be exciting. It signifies growth and an increase in demand for your product or service. However, with an increase in demand comes an increase in supply. If you are looking to start or manage a vehicle fleet to keep up with demand, keep these tips in mind.

Leasing vs. Owning a Vehicle Fleet

If you identified a need for a vehicle fleet, the next thing to consider is the type of vehicle. Additionally, you should consider whether to lease or own the fleet is in your best interest. There are pros and cons to both options. 

When leasing, there could be a mileage limit, a need to be more mindful of damage, etc., and that could potentially restrict business offerings and means of efficiency. A benefit of owning a fleet is increasing your business’s resources and control. However, with owning you also have the responsibility for regular maintenance and upkeep.

Vehicle Fleet Coverage 

1. One of the first things to do when buying a fleet of vehicles is to have it insured. Unlike a personal vehicle that would fall under Auto Insurance, a business vehicle fleet may be best protected under a Commercial Auto policy. In the event of the unexpected, it can help ensure employees and vehicles are covered.

• • Remember to discuss coverage options with an insurance agent. Having the right amount of insurance coverage is critical. Some coverage options may cover vehicle damage and loss, but not the personal property inside. See if purchasing additional coverage to cover personal property could be beneficial to your business.

2. Keeping the policy updated is important once coverage is obtained. Consider scheduling calls with your insurance agent to ensure your policy matches your changes.

• • For instance, adding a newly hired employee to the policy or even removing an employee could be easy to forget and costly if overlooked.

3. To keep your policy premium cost down, it’s important to highlight safe driving practices with your drivers. Additionally, emphasize the importance of having and maintaining a clean driving record. Multiple accidents from an employee could impact a policy premium. See how tickets could impact an auto policy.

As you prepare to expand and grow your business, let us focus on ensuring it is covered for your business’s needs. Contact your local OKFB agent for more information on the Commercial Auto coverage options available.