Executives at Up2U claim fleets could slash thousands of pounds from their costs by using their services instead of taking comprehensive insurance, especially if they have a low accident rate.
Through self-insurance, the fleet takes financial responsibility for the consequences of its own risks. It is still insured, but has a large excess, so it is only protected in the most serious cases.
If companies have an effective risk management policy and keep accidents to a minimum, then their insurance costs will tumble, the firm says. A spokesman said: ‘Conventional insurance penalises clients by forcing them to pay premiums in advance, often based on past claims, driving history and previous exposure to hazard or where clients have complex or unconventional requirements.
‘No-one knows for certain what the future may hold and this approach assumes that the past is a true indication of future practices and penalises accordingly.
‘With our pre-packaged self insurance approach, the benefits of self-insurance will have a significant impact on the profitability and efficiency of many businesses and organisations.’
A unique aspect of the Up2U service is that it opens the benefits of self-insurance to small and medium-sized companies.
The firm says the service will allow SMEs to enjoy the benefits of cost-effective self-insurance, an option commonly chosen by large fleets who want to take out third party cover with an insurance firm and then pay for the remaining damage to their own vehicles as and when it happens.
The company has been established by lawyers and risk-industry experts with almost a century of collective experience in insurance related industries.
Managing director Jonathan Mounteney said: ‘The Up2U proposition is unique in the marketplace and with our pre-packaged approach, the benefits of self-insurance will have a significant impact on the profitability and efficiency of many businesses and organisations.’
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