The number of vehicles being used by a fleet is a key underwriting factor. Normally the number of vehicles being used is relatively stable and this information is collected periodically to adjust pricing, usually at renewal. It is acknowledged by us and the customer that there are likely to be small fluctuations in the actual number of vehicles on the road during the year (both up and down).
At this time, we understand that some customers may need or choose to lay-up a larger number of vehicles than would normally be anticipated at any point during their usual trading cycle. Where this happens and this represents a material change to this risk, we will reflect this in the premium being charged and allow a return premium to reflect the reduced exposure. So, for example, a fleet of 20 vehicles, where one is laid-up, is not really a material change outside that which could happen at any point during normal trading. However, if the same customer has laid-up 10 vehicles due to a Coronavirus related loss of trade, it would be fair to reflect this in our pricing.
When not in use, the full extent of cover provided by the policy will continue to apply to the laid-up vehicles, as blanket certificates are provided to fleet customers. This means it will not be necessary to SORN the vehicles and they should remain on the customer’s MID record.
This provides the customer with the flexibility to utilise the laid-up vehicles immediately again, once required, and we would of course expect the customer to let us know at that time.