Private v Business use Under a Fleet Motor

Insurance should always be about protection not price.Many people use their private motor vehicle for the odd business trip, lease or run their car through the business as an expense or may purchase vehicles for their staff use as a employee benefit.

In such cases, the business owner where they have more than one car to insure to decide, or their  broker decides for them, that a fleet motor policy may be the way to go.

There is a potential trap with some fleet policies where if the vehicle is not registered for business use they deny liability at the time of the claim. What I am not sure of is whether these insurers ask the question at the time the insurance is taken out.

While it has been more years than I care to remember why an insurer would differentiate between private vehicles and business vehicles under a fleet policy but clearly in discussions with several insurance brokers some do.

I raise this as I would hate any client or broker to be caught by such an exclusion.

I did check with LMI’s own fleet motor insurer, Zurich, in case we had an issue ourselves and received written confirmation that it is not an issue with them. I say this to save any reader from writing to them and to save them from a heap of unnecessary enquiries.

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