Commercial motorcycle insurance companies offer customized coverage for fleets of motorcycles, rental bike companies, police departments and other organizations. Taking extra safety steps like training courses and risk assessments can improve safety and help you save money on your fleet budget.
Key takeaways
Commercial motorcycle insurance offers blanket liability coverage and add-ons for your fleet of motorcycles.
How much you’ll pay for insurance depends on your type of business, the number of motorcycles in your fleet and where you live.
Consider higher limits for physical damage and liability depending the needs of your business.
How does commercial motorcycle insurance work?
A commercial motorcycle policy offers blanket liability coverage for your fleet of motorcycles, along with any add-ons you choose. Insurance companies work with you to customize to your business’s needs. However, most commercial insurers cover motorcycles under their vehicle fleet policies, rather than advertising a separate motorcycle policy.
If you own a motorcycle rental business, you’ll need both a master policy to protect your fleet and a policy that you can offer your customers if they want extra liability or injury insurance for themselves. You might go with an insurance company that specializes in insuring rental businesses.
How much is commercial motorcycle insurance?
The cost depends on your type of business, the number of motorcycles insured and your state. However, the average motorcycle premium for individuals is $518 per year, but you can expect your premium per motorcycle to dip lower than this amount. The more motorcycles you have, the cheaper your premium may be.
For example, motorcycle rental companies might spend $70 per bike per year while offering insurance packages to customers starting at $15 per day. The cost may be lower because the company’s high number of bikes and because customers shoulder some of the coverage responsibility.
How to compare commercial motorcycle insurance
Insuring an entire motorcycle fleet can seem daunting until you work with a representative on your specific needs. Follow these steps to cover your troop of bikes:
Pinpoint providers. Find providers who offer commercial fleet or motorcycle rental business coverage. MBA Insurance is a good place to start for rental businesses, or you can ask a commercial broker or agent for recommendations.
Get quotes. Compare quotes from your provider list. You’ll probably have to speak with a representative about your specific needs, although some companies have an application form to start the process.
Choose coverage. A representative can help you navigate which coverage types you need.
Start your policy. Finalize your information with motorcycle and rider details, then start your new fleet policy.
Get a risk assessment. Some fleet insurers offer consulting to help you reduce safety risks for your riders. Using risk assessment or risk monitoring may land you a discount with some insurers.
Compare commercial motorcycle insurance
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What commercial motorcycle coverage do I need?
You’ll find many of the same standard coverage types as with other vehicles, but consider getting higher limits for physical damage and liability to better fit your business needs. Coverage you may need:
Bodily injury liability. Pay for medical expenses and court fees if other drivers or passengers get injured by your bikes. Consider getting a high limit between $500,000 to $1 million, as recommended by the Insurance Information Institute.
Property damage liability. Compensate other people involved in your company’s accident for vehicle or property repairs.
Excess liability. Defend your business from court fees or damage that exceeds your other liability coverage limits.
Collision. Protect your business from a financial hit if an employee or customer wrecks your company’s motorcycle. This coverage may only protect the bike for its original, unmodified parts.
Comprehensive. Bolster your fleet’s protection against thieves.
Towing or roadside assistance. Make sure your riders can keep business moving by covering towing costs and minor roadside repairs like a flat tire.
Agreed value. If your bikes are worth more than the standard value, you might work with your provider to get a specific coverage limit based on your fleet’s worth.
Customized coverage. Talk with a representative if you need specific coverage or higher limits not listed on the company’s website.
Does umbrella insurance cover motorcycles?
Your business umbrella policy may provide excess coverage for your vehicles too. Check your existing policy before considering other excess coverage types.
What coverage do I need for rental motorcycles?
In addition to these coverage offerings, motorcycle rental businesses can use a provider that offers insurance packages to their rental customers. Coverage offered to customers may include:
Supplemental liability. Customers can choose extra liability protection above the state minimum requirements.
Damage waiver. An option that protects guests if they cause physical damage to your bike after they pay a deductible.
Comprehensive. A provider may protect against some perils like theft and fire.
Roadside assistance. May cover flat tires, towing, fuel delivery and other needs. However, some companies just offer coverage for flat tires.
Trip interruption. Keeps guests happy by reimbursing food and lodging expenses if they have to end their trip because of a covered mechanical breakdown.
Personal property loss. Safeguards the rider’s personal belongings, such as cell phones, laptops or expensive riding gear.
What to watch out for
Insuring multiple bikes and riders has challenges. Easy mistakes or downfalls to watch out for:
Minimum number of motorcycles. A fleet insurance provider may require you to have a minimum number of bikes, such as five motorcycles. However, some will cover you with as few as two bikes, especially if you insure other company vehicles on the same policy.
Combined liability limit. Typically, commercial vehicle insurers offer a single limit for both bodily injury and property damage liability. While that limit can be high, accidents can reach the limit quickly.
Adding new bikes or employees. You’ll need to keep close tabs on policy changes when you add or switch bikes or cover new employee riders.
Risky riding habits. Consider annual safety training, inspections and risk monitoring to make sure your employees stay safe on the road.
Spotty driving records. You can review your employee’s driving records to ensure that only safe riders have access to company motorcycles.
Bottom line
When insuring any vehicle fleet, you might need to dig to find providers for your troop or rental bike business. However, you may find what you’re looking for with general fleet or rental insurance providers.
Common questions about commercial motorcycle insurance
Yes, certain commercial providers offer vehicle coverage for any business size. Nationwide may be a good place to start for quotes.
Your rental customer will be liable for the physical damage out of pocket as long as the customer signs an agreement to pay for that damage before riding. You might also opt to hold a security deposit upfront to help pay for these accidents.
Possibly, depending on the situation. However, your company is ultimately responsible for liability when employees are given a company vehicle. Insurers and court judges may consider your company responsible for approving that employee’s use of the motorcycle. You should get enough liability protection to cover you even if the employee cannot be held liable.
Sarah George is Staff Writer for Small Business Loans at BankRate and formally a personal finance writer at Finder focusing on all things banking and insurance. Her know-how has been featured in such publications as CBS, CNET and Reviews.com, and she was a panelist in Finder’s 2020 money-saving webinar. Sarah earned an English education degree and is a Certified Educator in Personal Finance. See full bio
Sarah's expertise
Sarah has written 116 Finder guides across topics including:
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