2020 has not been an easy year for many businesses with tough decisions needing to be made and costs reduced wherever possible. With many businesses being closed for a period of time and even when open finding the levels of business lower than previously being done, insurance is one area that may present opportunities for money to be saved.
One of the partners of Family Business United, a second generation family firm themselves, have introduced a new fleet insurance product that helps businesses by charging them for the mileage the vehicle does. Therefore, in the situation we currently find ourselves in with businesses not fully utilising their vehicles, it can present significant cost savings to the business with savings of up to 80% for vehicles not on the road.
Since this model is based on a monthly declaration, it comes with many benefits:
- It means businesses do not have to find large amounts of capital to pay for their insurance upfront
- It means business do not have to take out costly finance agreements to pay for their insurance
- It means that when business is slow and their vehicles are not moving, the cost of insurance is dynamic and reduces inline
- Offers cash flow planning benefits