Changing Fleet Applications Can Impact Liability Coverage

When fleet business applications change, it is important to inform your commercial insurance broker because the existing commercial general liability insurance may not provide coverage to the new operation. When changes are made in business operations, it is necessary to update insurance coverage to accurately reflect current business practices.

For example, let’s say you own a hauling company and decide to expand into the towing business. If you didn’t provide information about the new business application to the insurer, the commercial general liability policy may not provide coverage if one of your tow trucks damages a parked car.

Although insurance responsibilities typically fall outside a fleet manager’s realm of responsibilities, it is important to be aware of the different state laws that affect corporate liability exposure, especially when you are managing a nationally dispersed fleet. In addition, fleet management plays an important role in minimizing loss exposure by enforcing fleet safety policies and implementing fleet safety programs to help deter preventable accidents.

In the final analysis, a fleet manager is a crucial component in corporate risk management by instituting the policies and programs that help to minimize corporate liability exposure.