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Choose the right insurance for your business vehicle

Published on: 25 April 2018

Choose the right insurance for your business vehicle

The needs of business owners are all different: the roadside assistance needs of a truck owner are different to those of a fleet owner - and businesses covering shorter distances (like handymen or caterers) face significantly fewer risks than vehicles covering long distances.

Essentially, you need to understand what kind of insurance is right for your business vehicles.

Here are 8 tips to help you choose the right insurance for your business vehicle:

  1. Choose a flat excess. Many insurance companies apply percentage-based excesses, which means you have to pay an excess determined by a percentage of the damage to the vehicle. To avoid any cash flow issues – and make budgeting easier! - choose a flat excess.

  2. Plan ahead. You never know when one of your employees might not be able to work. Rather than losing out on potential business or risking sending an uninsured driver onto the roads, choose an insurance option where particular drivers do not need to be specified on the policy – rather a pool of drivers.

  3. Choose deposit and emergency repair cover. Even though your insurance company might pay you out in full in the event of a vehicle being stolen or written-off, the potential loss of income while you wait for that pay-out could prevent your business from running optimally. Deposit cover allows you to claim back a percentage of a vehicle’s value, so that your business can get back on track faster. Having emergency repair cover ticks another box in ensuring your vehicle gets back on the road (and in business) as soon as possible!

  4. Driver dishonesty cover. As horrible as it is to consider that someone in your employ might jeopardise your business, some insurers – like MiWay - offer a product to protect you as a business owner covering you against loss, damage, injury and liability resulting from driver dishonesty.

  5. Plan your routes – or your insurance. If your business operates out of the country from time to time, it’s important to make sure that your insurance policy covers you in full for any incidents that might take place outside of South Africa.

  6. Mileage-based cover. If your business operation extends no further than the boundaries of your neighbourhood, you shouldn’t be paying the same premium as a fleet owner transporting goods between Johannesburg and Cape Town daily. Make sure to specify the parameters you operate in to ensure a fair premium.

  7. Protect your stock. A breakdown or unforeseen incident when transporting perishable goods could damage stock. It’s a good idea to invest in Deterioration of Stock cover to avoid unnecessary losses. You could also link the cover of your goods in transit to a specific vehicle, as this can lower the premiums you pay.

  8. Utilise services at your disposal. Optional add-ons offered by your insurer might seem unnecessary at the time, but they can be very helpful. For instance, lock and key cover or comprehensive roadside assistance can help you avoid sticky situations. Business Support Services like MiWay Business Insurance’s MiBusinessAssist, even offer help with procurement and offer discounts on certain business purchases.

Choosing wisely when it comes to insurance for your business vehicle can protect the wheels your business depends on - and your pocket! Contact MiWay Business Insurance for an obligation-free quote today!