A Guide to Construction Fleet Insurance

Correct insurance is vital, especially in this sector. According to the Health and Safety Executive, construction remains the most dangerous industry in the UK. Whilst you cannot stop all accidents, you can ensure that you are covered should the worst happen.

Construction fleet insurance is your organisation’s all-in-one protection for peace of mind.

Firstly, what counts as a vehicle within a construction fleet?

Generally, construction vehicles are private and commercial, and they play an active role in delivery, storage and the construction process itself. Such vehicles include but are not limited to:

• Cranes
• Compactors
• Forklifts
• Excavators
• HGV vehicles
• Bulldozers
• Tractors
• Cars
• Vans

The insurance required depends on various factors. To assess your insurance needs, you must begin by taking an inventory of your fleet size, the frequency of use and what your fleet will do.

Some of the types of coverage you may require in your construction fleet insurance policy include:

Carriage of Own Goods – Goods and materials that are carried and used for your own use.

Haulage – Goods carried for a fee, hire and reward. The transportation of goods belonging to third parties.

Tools of Trade Risk – Also known as Third Party Working Risk, this could cover incidents when the vehicle is being used as a tool of trade. With a digger for example, third party working risks will not be covered as standard on a fleet insurance policy once the vehicle is being used as a digger.

A typical motor fleet insurance policy will cover your vehicles for their usage, including the standard minimum level of cover required under the Road Traffic Act, but excluding Third Party Working Risks. 

In short, construction fleet insurance packages aim to cover every scenario – regardless of how unlikely, but it is important to understand what cover is excluded.

How many vehicles do you need for construction fleet insurance?

Construction fleet coverage is available for businesses with as few as two vehicles. At FleetCover, we can cover you with a minimum of 2 vehicles, and expand with you to cover a much larger fleet.

Typically, most insurers will also allow you to add vehicles to your existing policy without purchasing an entirely new fleet insurance package.

Can you get an insurance policy for a hired construction fleet?

Many construction businesses may choose to hire vehicles if they are taking on a specialised project. This provides the business with the flexibility to grow or shrink the fleet as required, depending on demand, and a fleet policy will allow you the flexibility to do this. 

At FleetCover, we provide insurance policies for construction fleets, whether owned or hired. The type of coverage and the way your policy works remain the same in both scenarios.

Construction fleet management tips

Construction fleet management can provide challenges for managers and business owners alike, especially as their fleet grows. Mismanagement can cause day-to-day business disruptions, productivity losses and a loss of profitability. Having a formal risk management policy can provide the guidance needed to effectively manage your risk. 

Follow these tips for effective construction fleet management:

1) Take out a bespoke insurance policy

Accidents happen, but they happen in the construction business frequently. For example, in 2022/23, UK construction fatalities rose by over 50%, and these figures do not account for non-fatal accidents.

Standard insurance policies to fulfil your legal obligations should never be considered sufficient. A single broken crane or stolen forklift can cost your company millions.

Bespoke fleet insurance analyses the risks posed to your specific business and provides coverage that accounts for them. Moreover, working with a specialist fleet insurer ensures that you only pay for the protection you need.

2) Create a regular inspection/maintenance schedule

Regular inspections of your fleet along with investment in preventative maintenance, enable you to pinpoint potential problems before they become costly issues.

Moreover, demonstrating appropriate diligence could be critical when making a claim through your insurance. If you noted and ignored a problem, it could impact your ability to make a claim. If there was an incident which resulted in an investigation by the Health And Safety Executive, the first thing they would ask to see would be a copy of the maintenance/inspection schedules and then the deep dive would begin.

3) Deploy data-driven decision-making

Fleets are costly, and making the wrong decisions can damage your bottom line. Part of construction fleet management means setting down key performance indicators and making decisions in line with your overall objectives.

Utilising a fleet management platform could assist you in maximising your operations, such as scheduling maintenance and repairs, detecting accident trends and monitoring your employees.

Data collections and analysis is becoming increasingly pertinent in all aspects of business management, which would also include fleet management. 

4) Collaboration and communication

Effective fleet management begins by creating a transparent chain of command.

This will begin at an organisational level and will include managers and also extend down to drivers and maintenance professionals. A clear channel of communication will allow a more proactive approach to risk management. 

5) Explore new technology

Technology has transformed every aspect of the construction business. 

Although it may be intimidating to introduce brand-new systems, exploring the realms of new tech can pay off in the long term.

The same goes for assessing things like fleet insurance policies. With data to drive your decisions, you can confirm that you are getting the most from your policy and that you are not leaving money on the table.

With all this in mind, benefiting from a vast fleet of construction vehicles begins with protecting them. Construction fleet insurance is your first line of defence when it comes to protecting your interests and we are here to help you with this process and ensure that you are adequately protected.