You may have commercial vans as a part of your business. They might be used for deliveries or for driving around running errands. If you have vans then you will need commercial van insurance to cover the vans themselves and any tools that are kept in the vans.
Be sure to check what policy you are signing up for before you sign on the dotted line. Check the policy details, how much excess costs, and how much you are covered for. Also, check before you sign up for what you will not be covered for. You don’t want to try and claim for something that isn’t covered.
Let's take a look at why commercial van insurance is needed and how you can go about getting it.
What Is Commercial Van Insurance?
Commercial van insurance is a type of insurance policy. If you have a van that you use for your business and to make a living it is paramount you are covered if anything goes wrong, for example, if you have an accident or if your van is stolen or damaged in any way.
Ensure you shop around different sites to see what your options are for business van insurance quotes. Various sites will offer different policies with varying pricing. If you need to insure a fleet of vehicles if your business has more than one van then you will need to buy fleet van insurance. Doing this will ensure all the vans are covered on one single policy rather than having paperwork and insurance for all vans separately.
What Insurance Options Are Available?
Depending on what you use your commercial van for there are different types of van insurance available to you. Be sure to double-check you are signing up to the right one, check the name and the description of all options.
- Carriage of own goods - this is if you use your van for your job for example you may be a self-employed plumber or electrician. The stuff you carry in your van will be related to your specific field of work. You will also need carriage of own goods insurance if you only use your van for commuting.
- Carriage of goods for hire or reward - if you are using your van to transport and move around goods for payment then you will need to get this type of insurance. This option is for those that deliver goods to multiple locations such as fast food delivery drivers.
- Haulage - if you travel a long way to make one single delivery then you will need to choose the haulage option when asked what insurance you want for your commercial van.
What Does Commercial Van Insurance Cover?
There are different levels of protection available and what is covered will vary depending on the type of policy you sign up for. You need to tell your insurer when you sign up for a policy what type of business you run and what the van is used for, deliveries for example. You will not be allowed to use your van for any other purpose other than that stated in your policy as you will not be covered if there is an incident involving the van.
Typically, van insurance will cover the following:
- You will be covered for theft, fire, and vandalism due to loss or damage
- The goods you are carrying will be fully insured
- You will be allowed to have other named drivers on your policy, some policies allow up to four other people
- If you are in a motor accident you will be covered for accidental damage to your van and any other vehicles or possessions
- Legal fees if you have to make a claim or you have a claim made against you
- Your insurer will pay out if you are injured or have a personal accident and can’t recover costs from the third party
- In case you have an accident your insurer will pay medical expenses to you, any injured passengers, and third party individuals
- There are also added extras that you can choose to add to your policy such as breakdown cover and legal protection. You also have the option of getting a courtesy van should yours be getting repaired
What is not covered under commercial van insurance?
Like with all insurance policies, exclusions in your commercial van insurance will apply. This list isn’t set in stone of course, as different insurance companies will offer varying subjects that are covered and not covered.
- If you have general wear and tear on your vehicle you cannot claim for this as the damage happens over time and can’t be helped
- Electrical failure or mechanical faults also won’t be covered in most policies
- If you leave the keys in your van and it gets stolen or damaged then you are not covered for this. Essentially because it is your fault for leaving the keys in there
- If personal items are stolen or go missing because you didn’t lock the vehicle
- Goods and stock you have on the van unless you have got this covered separately and the insurance company is aware of what you transport.
Do You Need Commercial Van Insurance?
You will need to purchase van insurance if you use your van for business purposes, even if you only use it intermittently, commercial van insurance is a must. To qualify for commercial van insurance your vehicle must be under 3.5 tonnes. If you drive anything bigger than this it is classed as a heavy goods vehicle and you will probably need to get truck insurance.
Other reasons to need commercial van insurance include:
- Using your van as a sole trader, eg. a builder or contractor
- You are a courier service that uses vans for deliveries
- If you use your van to commute to work but don’t use it as part of your job
What Level Is Going To Be Right For You?
As with other insurance companies, there are three levels of cover to choose from when it comes to van insurance. The three levels of cover are:
- Fully comprehensive - this covers everything and is the maximum level of cover available. It covers your van, any passengers in your van, goods contained within your van, and anyone injured in road traffic accidents.
- Third-party, fire, and theft - this level of protection will cover any damage you have caused to another person's property. It will also cover your vehicle if it has been damaged by fire or been stolen.
- Third-party only - this is the bare minimum you need to be able to drive legally. You must have some form of insurance to be allowed on the road. This insurance only covers you if you injure or hurt someone else or damage their vehicle in any way. There is nothing in this policy to protect your vehicle. So ensure you weigh up the risks before signing up for this level of protection.
We hope this helps you understand commercial van insurance.