24 February 2020
How to keep bulk fleet insurance
costs under control
Running a bulk
logistics fleet, however large or small, is a costly business. There are
seemingly endless lists of items to budget for, and the finest margins can make
the difference between profit and loss.
Fleet insurance for
bulk logistics, or courier business insurance, enables a bulk logistics
business to cover all of its vehicles on a single policy, with one renewal date
and one expenditure to manage. It’s obviously a compulsory expense, but this
can mean it’s a cost that fleet managers don’t really think about or look to
limit, until there’s a sharp hike in their premium.
The key to keeping
bulk fleet insurance as low as possible is to look at your business in the same
way as an underwriter does. Here are several
ways to ensure your bulk logistics operation mitigates the risks associated
with high fleet insurance costs.
Invest in trade association
Meeting the criteria
required for official trade association membership, such as the Freight Transport Association (FTA) or the Road Haulage Association (RHA), signals to insurers that your business
operates to industry standards.
Secure your fleet at base
It’s not only while
they’re in the field that your vehicles, and their cargo, could be a target for
thieves. Ensuring that your base of operations includes a secure garage or
locked car park for vehicles kept there at night can help to lower your
Install immobilisers and
alarms on your vehicles – these can be used by your drivers in between drops as
well as at night – and think about installing CCTV cameras
and/or an integrated access control system to cover your vehicle lockup.
Limit driver turnover
Your drivers are the
most crucial factor when it comes to the road safety of your fleet. In an ideal
world, a bulk haulage insurer will look for a roster of regular drivers who
have been driving for your operation for several years, with limited turnover.
Rightly or wrongly, high numbers of drivers leaving your firm, or not staying
for very long, can undermine your credibility as an employer in the eyes of
The ages of your
drivers are also a consideration. A team of experienced drivers – generally
seen as those over 25 and under 65, and with clean records – will be the most
cost-effective to insure. That said, it’s not always possible to restrict your
workforce in this way, especially with rising numbers of drivers reaching
retirement age. If your business does employ drivers under 25, having them
drive exclusively during the day and limiting the mileage they cover can help
to keep insurance costs low.
Prove responsible driving through
These days, on-board
vehicle tracking and sensor-enabled technology can actually prove that your
drivers operate their vehicles to a certain standard. Bulk logistics firm that
fit cab-mounted video systems and/or telematics systems can reap the rewards of more affordable fleet
insurance, as long as the solutions capture evidence of responsible driving and
nothing potentially dangerous, such as speeding.
Telematics systems can
be used as a training tool in themselves to help ensure good results across a
fleet. Any poor driving habits are recorded and transmitted back to a central
data repository and can be used to raise awareness with drivers and educate
them to refine their behaviour.
Reduce all kinds of fleet management
costs with bulk logistics optimisation software
operators are also more likely to receive the best possible fleet insurance
rates by communicating closely with their insurance brokers and keeping them
informed of changes as they happen.
However, on an
operational basis, there’s much that a specialist bulk logistics management
system can help a fleet manager achieve in terms of reducing costs. Take a look at our blog for more ways to cut fleet expenses, or contact us to find out more.