Do you own a van for business or commercial use? If so, ensuring that it is fully covered with the correct type of insurance is essential. Below is everything you need to know about business van insurance.
How does van insurance differ from regular car insurance?
Van insurance, as the name suggests, is specific to vans and covers the policyholder should the van be stolen, damaged or vandalized.
You would need van insurance if you use it for your sole trader business or it is used as part of a business.
Van insurance policies are tailor-made to vans and you will need this kind of insurance, even if your van is not used and remains locked away and idle for short periods of time.
Should you only use your van for personal use, a regular van insurance policy will suffice.
What does business van insurance cover?
Business van insurance is divided into 3 classes (1, 2 and 3). In addition, there is also commercial van insurance.
Class 1 business van insurance covers you for van driving between sites for work purposes. It doesn’t include cover for door-to-door sales and is the most inexpensive kind of van insurance.
If you wish to add a named driver to your business van insurance policy, class 2 insurance could be a good option for you. It is very similar to class 1 insurance, with the only difference being the addition of a named driver.
Class 3 business van insurance is perfect for long-distance van driving and also covers you for door-to-door sales (delivery of samples only).
Businesses who use their vans for the delivery of sold goods would require commercial van insurance. You would need to specify the nature of the goods you carry in your van and your policy would then cover you for the transport of these goods only.
Unfortunately, commercial van insurance doesn’t cover you for work out of the scope of your insurance policy (ie. helping a friend move house or using it for a second job).
If you have decided that you need commercial van insurance, you will have to select one of 3 classifications:
Transport of goods for hire and reward: this is ideal for courier companies and delivery drivers who carry other companies’ goods for monetary reward
Haulage: a good option for long-distance van driving and deliveries
Transport of your own goods: for those who carry business goods in their vans (such as tools and materials for the work they provide)
What will my van insurance cover?
Van insurance is similar to car insurance in that there are 3 insurance levels to choose from (ie. fully comprehensive, third party, fire and theft and third party only).
The level of insurance you choose from will depend on your specific needs and how high you deem your risk to be.
You can also pay a nominal monthly fee for some added extras including breakdown cover, public liability cover, legal cover, replacement van coverage, tool cover, employers’ liability cover and foreign use cover.
What kinds of vans does business van insurance cover?
You can insure your van for business use if it is a double or single cab van, a light van, a tipper, a pick-up or a Box Luton van.
How expensive is business van insurance?
The monthly premium you pay for your business van insurance will depend on various factors.
The 3 main elements affecting your insurance premium will be the state of your van (how old it is, its engine size and value), your driving profile (a clean driving record will drive the premium down) and your personal profile (such as your age, where you live and occupation).