An Overview of Commercial Vehicle Insurance in UAE

With commercial vehicles involved in the business, business owners worry about their safety more often than not, as those vehicles are the business’ assets. Regardless of the business’ size or annual turnover, any damage to the business vehicles, ranging from company cars to transport vehicles, is likely to bring financial loss and legal stress.

However, to select the right commercial vehicle insurance in UAE, business owners must understand the insurance plans well. This blog therefore is here to provide a clear understanding of what is commercial vehicle insurance which includes details about fleet insurance plans in UAE as well.

What is Commercial Vehicle Insurance

This commercial vehicle insurance is a general insurance plan in UAE that provides financial and legal security to commercial vehicles in case of any road accident or similar mishap. As this insurance policy often includes the benefits that private car insurance packages do not, business owners across industries should consider obtaining it.

Along with cars, the commercial vehicle insurance policy covers other types of vehicles that are used for business purposes as well as for any accidental damages and losses. The types of vehicles that the insurance policy covers are: 

• Cars including taxis and cabs used for online rides 
• Construction vehicles like forklifts, cranes, etc. 
• Food trucks 
• Company cars
• Utility trucks 
• Towing vehicles 
• Pick-up vans 
• Two-wheelers and vans used for delivery purposes
• Box trucks 

All businesses across industries may need commercial motor insurance with more or less coverage. Anyway, industries that need commercial vehicle insurance the most are as follows:

• Real estate and property management industry 
• Food delivery 
• Online product delivery 
• Transportation services 
• Construction industry 
• Packing and moving industry 

Businesses that largely depend on commercial vans, motorbikes, trucks and other types of vehicles should not miss obtaining the commercial vehicle insurance. Otherwise, any accidental damage that is not under any insurance coverage may cost high and put a lot of financial burden. 

Common Types of Commercial Vehicle Insurance in UAE

Third party liability commercial vehicle insurance: 

This insurance policy is a basic-level plan that helps businesses stay safe from legal and financial hassles of third-party claims in cases of accidents and other mishaps. To cover personal injuries of the insured vehicle’s driver or the damages on that vehicle under this policy, you may have to include add-on plans into it. As UAE federal laws direct that every vehicle in UAE must be insured and obtaining personal car insurance for every commercial vehicle you use for business is difficult, this third-party liability insurance for business vehicles is ideal to obtain at least. With this insurance plan, small and medium businesses can also comply with UAE laws without putting stress on their limited budget

Comprehensive commercial vehicle insurance:

As the name suggests, this commercial vehicle insurance plan covers third-party claims, personal losses and damages. Even if the driver of the insured vehicle is at fault in cases of accidents, this all-inclusive insurance plan helps to pay for the cost of third party injuries and losses, damages on the insured vehicle, and emergency treatment of the driver’s bodily injuries. Also, this plan includes coverage for legal fees for settlements and other cases. Besides this, a comprehensive commercial vehicle insurance plan covers damages and losses caused by theft, natural or man-made disasters. 

What does Commercial Car Insurance Include (and what it does not):

Sometimes, business owners get confused about what commercial vehicle insurance specifically includes and what it does not. Although the inclusions and exclusions may vary as per the plans and insurance companies’ terms and conditions, some general factors remain the same. Here are what commercial motor insurance generally includes coverage for:

• Accidents with other vehicles
• Fatal collision with objects
• Natural calamities like landslide, earthquake, thunderstorm, heavy rainfall, hailstorm, etc. 
• Riots, strikes, terrorist activities, war, biological/chemical threats, and other man-made disasters 
• Fire, explosions and crucial electrical hazards on road
• Theft of the commercial vehicle

Commercial Fleet Insurance as a Useful Vehicle Insurance Plan in UAE

When a business owns numerous vehicles for commercial purposes, a commercial fleet insurance plan is a useful option to insure all of the vehicles at one go. This plan is a type of commercial vehicle insurance which is ideal for businesses that have a fleet or large group of vehicles to be used for their commercial purposes. As a comprehensive plan, this commercial fleet insurance covers the damages and losses happened to any vehicle that is a part of that insured group of commercial vehicles.

Final Words

Reasons like increasing legal fees, stricter regulations, more traffic on road, etc. are enough for businesses involving cars, cargo trucks, vans, bikes and other types of vehicles to get commercial vehicle insurance. Depending on business nature and size, owners can decide the most suitable commercial motor insurance plan. Nonetheless, leading insurance companies like CoverB, with their expertise and experience can suggest to business owners about the best plan and most profitable add-ons for commercial vehicle insurance.