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What is business van insurance?
If your business needs a van to operate, you need the right insurance too. A van can be a vital part of the smooth operation of your business. Whether you own one van or a whole fleet of commercial vans, making sure your vehicles and drivers are covered is essential.
Business van insurance will cover your costs in the event that your van is damaged or involved in an accident. It will also cover you for any liability for claims made against you.
Who needs it?
Like private cars and other vehicles, business vans must be covered by appropriate insurance in order to drive on the roads. If you own a business van but do not drive it you must declare it as officially off the road with a SORN (Statutory Off Road Notice) if you do not intend to insure it.
If you use your van only for private use, then you still need insurance, however, you might not need a commercial van insurance policy. Even if your van is only used occasionally for business use, you still need business insurance.
If in doubt, anything, where payment is involved, can be classed as commercial use. So for example, using a van to transport it to work as a DJ at weekends would mean you need business insurance.
What does the cover include?
Anyone driving a van on the road must have adequate insurance in place. As well as cover for the third party, third party fire and theft and comprehensive insurance, there are other types of cover which can benefit commercial van users.
There are three main types of business van cover:
- Carriage of own goods
- Carry goods for hire or reward
Carriage of own goods
As the name implies, this type of insurance covers your own property in your van. It is sometimes referred to as ‘carriage of tools’, but does not just cover tools.
If you work in a trade where you move equipment or tools between your home and place of work, this type of cover ensures your belongings are covered.
Carry goods for hire or reward
If you use your van to work as a delivery driver, you will need this types of cover. The policy is designed for those making multiple stops or drop-offs using a van to make deliveries.
Haulage cover is usually for businesses making fixed deliveries to established clients.
How to save money on business van insurance?
It is always best to shop around when taking out insurance. It can be expensive, but there are ways to try and reduce the costs involved.
Consider increasing the voluntary excess on your policy. Many insurers will offer reduced monthly premiums if you commit to a higher sum up front in the event of a claim
Keeping your business van secure should be obvious. The risk of theft of the vehicle or its contents can be reduced if your van is stored securely when not in use. Parking in a locked garage can reduce the cost of cover.
The size and power of your van can affect your premium costs. Consider whether you need a large van, as costs associated with insuring larger vehicles with powerful engines will be higher than that of smaller ones. There is a balance to be struck to make sure that your van is suitable for your needs.
Can I insure my van under my company name?
Usually, if your van is owned by your company, or registered to it, you should be able to get business insurance in the company name.
My van is modified. Can I still get business cover?
Check with your insurer. There are specialist policies available for modified vehicles which might be more suitable.
Why are pick-up trucks classed as vans for insurance?
Pick-up trucks usually have a longer wheelbase, which is why insurers class them together with vans.
If I use my van for both social and business use, what type of policy do I need?
Many people use their van for private reasons as well as business. Even if you only make one journey a week in your van for commercial purposes, you will still need to make sure that you have appropriate business cover in place.