Modern businesses have a lot of rules and regulations that they have to follow. These vary from industry to industry, as well as different business functions within a certain industry. Sometimes, making sure that all regulations are being followed can drive a company owner or manager up the wall, and take a tremendous amount of time. However, it has unfortunately become a standard practice; if one wants to operate a business, there are rules and regulations that need to be followed.
There are those that will argue that this ultimately benefits consumers and other businesses, and this is probably true. One area where just about any company owner or manager tends to agree is that various types of insurance are needed to protect the business. If the company has a fleet of vans or trucks operating in public, they absolutely must have insurance to cover all the vehicles. Not only does this make perfect business sense, it’s also been the law in the United Kingdom since 1930.
Most company owners or managers find that fleet insurance, which is a single policy covering all the vehicles owned by the firm, is the most cost effective and responsible way to go. For one, it makes administration of the insurance policy extremely easy. There’s only one policy, with one expiration date, covering all the vehicles. There is no need to juggle multiple accounts, or monitor multiple folders and potentially lose sight of individual insurance coverage on one particular vehicle. Naturally, one of the challenges is finding the most desirable insurance policy that perfectly fits the company’s needs. While this might seem like an arduous task, it really is quite simple to accomplish.
By going to online sites, one can not only compare rates from various companies, but also learn more about the different types of coverage that are available. Some companies who are desperately trying to save cash will take the risk of having the minimum amount of coverage as required by law, which can expose them to costly settlements if anything should go terribly wrong. Other companies would rather get the maximum coverage, which they can often deduct, as a reasonable business expense, and not have any unpleasant surprises down the road.
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It’s the Law of the Land
The law in the United Kingdom that regulates insurance coverage for any driver on the road is known as the Road Traffic Act 1988, and was in fact last modified in 1991. It contemplates many different types of insurance policies:
- The very basic and minimum coverage required by the Act is known as Road Traffic Only Insurance, but is not sold very often, due to the increased exposure to the driver or owner in the event of third party claims.
- A policy that provides far greater protection is referred to as Third Party Only Insurance, which does provide for higher coverage limits from third-party claims.
- One of the most popular types of insurance is commonly referred to as Third Party Fire and Theft. As the name implies, it not only protects against third-party claims but also from damage or destruction due to fire and theft. Some policies will also cover vandalism, while others will not.
- As the name implies, Comprehensive insurance offers the greatest umbrella of security. It covers against all possible issues involving operating a vehicle, including vandalism. While it does offer the best protection, it is also typically the most expensive.
When determining what type of vehicle insurance company needs, a business owner or manager should have all pertinent facts and details at their disposal by checking online sites. Only this way will they be able to make an informed business decision that balances risks and costs.
Mike is a freelance writer who writes on different topics such as web design, marketing and social media. He has published more than 500 articles about various topics, including role of guest blogs and social media role in daily life. His famous articles includes article on Fleet-insurance. He loves to travel and make new friends.