Business Insurance
Commercial Motor & Fleet Insurance
A vehicle used for deliveries, site visits or carrying equipment is part of how a business earns its income. Commercial motor insurance may cover individual vehicles or a fleet, with the scope shaped by vehicle type, use, drivers and the selected level of cover.
What it can cover
Options depend on the vehicle and the insurance selected, and can include:
- Accidental damage, theft or other insured loss to a vehicle under comprehensive cover.
- Legal liability for damage a vehicle causes to other people’s property.
- Selected benefits for towing, hire vehicles, windscreens, accessories or recovery costs, subject to limits and conditions.
Common risks and exposures
Loading and unloading, overnight parking, multiple drivers and long-distance use can create different risks from private motoring. Vehicle downtime may disrupt deliveries or leave staff unable to attend jobs. Tools, goods in transit and equipment attached to a vehicle need separate attention.
Who may need this insurance
Trades, delivery businesses, transport operators and organisations with staff vehicles may need commercial motor cover. A fleet arrangement can help coordinate multiple vehicles, but there is no universal vehicle count or policy structure that suits every business.
What KIB Group considers
- Vehicle schedules, modifications, finance interests and agreed or market value settlement arrangements.
- Driver ages and histories, operating radius, carriage of goods, hire-and-reward use and overnight garaging.
- Claims experience, excesses, repair arrangements, replacement vehicle limits and changes to the fleet during the year.
Exclusions and considerations
Mechanical breakdown, wear and tear and undeclared uses may be excluded. Driver restrictions and additional excesses can apply. Motor property-damage liability is different from compulsory injury insurance, including Victoria’s TAC arrangements, and does not replace it. Lost revenue, cargo and tools are not automatically covered by a motor policy.
Questions worth asking
Will private car insurance cover business use?
It depends on the insurer’s accepted use and what has been disclosed. Occasional business travel is different from deliveries, transporting goods or hire-and-reward work. Review the vehicle’s actual use before relying on private motor cover.
Does comprehensive cover always include a hire vehicle?
No. Hire vehicle benefits may depend on the type of event and can have daily limits, maximum periods or conditions about availability. A standard replacement car may not be suitable for a specialised commercial vehicle, so operational needs should be discussed in advance.
Related insurance
Already need to notify a claim? Commercial motor claim notification.
Cover starts with a conversation.
Talk with our Melbourne-based team about your business, wherever you operate in Australia.
This is general information, not personalised financial product advice. Cover varies and is subject to policy terms, conditions, limits and exclusions. Consider the relevant policy wording and your circumstances before deciding; an enquiry does not bind cover.
