A new e-bike fleet insurance product has been launched by motor insurance business Zego in response to the emerging market for light electric vehicles as part of delivery and cycle tourism networks.
The new product for e-bike fleets is fixed-term annual cover, but is charged on a monthly basis to enable businesses to pay at shorter intervals. This means that there is no need for businesses to make a large upfront payment and makes for a much healthier cash-flow.
Importantly and similar to Zego’s moped product, this is priced per vehicle, so businesses only pay insurance for vehicles that are actually in use. Through both of these flexible products, fleet businesses can maintain greater control over their cash flow, and can make savings which can then be channelled back into other areas of their business, such as expansion.
Though a new product on the market, the insurer says that its lead time to deliver cover is short by industry fleet standards, with policies likely to go live in under a month and sometimes as quickly as a week. This ultimately means revenue can be generated sooner.
Ines Feracci, Commercial Director at Zego, said: “The market for fleet moped and e-bike businesses is growing at a rapid pace, particularly due to the surge in delivery and courier services as a result of the Covid-19 pandemic.
“Zego has already been able to serve this part of the market well, by partnering with a number of fleet businesses and work providers, and this product is an evolution of that work. We recognise the growing use of mopeds and e-bikes by delivery drivers and riders up and down the country, and are pleased that alongside our partners we are now able to provide a far more affordable and fairer insurance model for these businesses.”
The new e-bike fleet insurance product has been developed in partnership with Wakam.
For more detail on insurance products available to the bike business, see here.