What is a Commercial Motor Insurance Policy?

If your business uses vehicles to operate, then having a commercial motor insurance policy is essential. The commercial  motor insurance market typically sees a 9.3% annual increase due to the growing adoption of commercial fleets, the need for risk mitigation, and regulatory compliance requirements.

Organisations that want to explore  how  to  get  insurance  for  motor  vehicles  they use in commercial contexts, may find investigating what a commercial motor insurance policy is and how it supports business useful. If you drive a vehicle for business purposes, then there is a legal obligation to have in place motor third party liability cover which is provided by a commercial vehicle insurance policy.

The commercial motor insurance sector in EU countries generated an estimated €15 billion in premium in 2023 and this is predicted to continue increasing in the coming years. 

Now is the perfect time to ensure that you have the right commercial motor insurance policies for your business vehicles that provide proper cover and meet your legal responsibilities.

Contents

●   What is a commercial motor insurance policy?

●   Does your business need a commercial motor insurance policy?

●   Commercial motor insurance from GasanMamo.

What is a commercial motor insurance policy?

All vehicles used in your business require to be covered by a commercial motor insurance policy. Essentially, commercial motor insurance works in the same way that private motor insurance does. You purchase a policy that covers your business against financial liability if there is an accident involving your vehicle or if that vehicle causes damage or injury to others.  In addition you can also buy cover to protect yourself from costs relating to damage incurred  toyour vehicles.

It’s your business’s responsibility to ensure that employees who  drive  your  company’s vehicles are covered in the event of an accident, injury to a person, or damage to another vehicle or property.

This does not refer to your employees using their private vehicles to drive for work purposes as they should take out their own insurance policy to cover their car. Commercial motor insurance can generally cover all types of vehicles used for commercial purposes such as taxis, lorries, trucks, vans, minibuses, and plant or construction vehicles (on wheels).

Enterprises can choose between Third-Party, Third-Party Fire & Theft or Comprehensive motor insurance policies to tailor a policy to suit their specific range of vehicles, financial budgets, and operational goals.

Does your business need a commercial motor insurance policy?

If your business owns and uses motor vehicles, then having the right commercial motor insurance will protect your organisation and your employees.

In addition, there are significant benefits to taking out a commercial motor insurance policy for your business vehicles, including:

1. Roadside and towing assistance

A  broken-down  vehicle  can  cause havoc to your operations and business targets. Goods don’t arrive on time which disrupts the supply chain and creates delays for you and your customers.

A quality commercial motor insurance policy provides cover for the cost of roadside assistance and towing services should one of your vehicles break down.

2. Theft cover

What do you do if one of your cars, lorries or trucks is stolen? This can cost businesses an eye-watering amount of money to investigate, report and replace a stolen vehicle. Plus, with a reduced number of company vehicles on the roads, your organisation may struggle to deliver on time.

With a commercial motor insurance policy from a professional insurance provider, your business can access funds to replace a stolen vehicle without enduring substantial financial burdens.

3. Third-party risks

Your business will be covered for damage to other people’s property, and compensation for injury is usually part of a third-party commercial motor insurance policy. It should also cover repair, damage and legal costs you incur to defend yourself or employees against legal action.  It is also important that wider cover for special or dual-purpose vehicles like those used for construction and roadworks is purchased as an add on.

4. Comprehensive protection

Comprehensive commercial policies will provide more elements of protection for your vehicles and business. Natural disaster, fire or theft damage is likely to be covered within your premium.

Accidental damage cover for your company vehicles can be acquired with this type of insurance policy or cover for the replacement of locks in some circumstances. As the name suggests, a comprehensive commercial motor insurance policy delivers a full level of coverage to keep your business running smoothly.

5. Flexibility

A commercial motor insurance policy is typically flexible so you can tailor the coverage to your vehicle types, your business priorities and the market you’re servicing. You may have a fleet of commercial vehicles and this kind of policy enables you to protect your fleet with a simplified insurance and claims process to keep administration to a minimum.

Commercial motor insurance from GasanMamo

Here at GasanMamo, we have years of experience providing businesses with the best motor insurance policies to protect vehicles and support business goals.

We are well known as an expert team who listen closely to your needs and supply the most suitable insurance policies that provide the right level of cover.

Take a look at our  commercial motor insurance policy criteria to help you understand what you can gain from protective vehicle insurance coverage. Whatever questions you have, we’re always here to answer them and provide you with the latest up to date information you need to make an informed decision.

If  you  want  to  know  more about commercial insurance and the  motor   insurance

 claims  procedure, get in touch to  have  a  chat  with our friendly specialist team. We’re always happy to help.

GasanMamo Insurance is authorised under the Insurance Business Act and regulated by the MFSA.