Many professions regularly use vans to conduct business. These include couriers, florists, electricians, painters, plumbers, and caterers. If you operate a van for work purposes, you should have a commercial auto insurance policy that includes van insurance.
What is Van Insurance?
Van insurance is a form of commercial auto insurance that applies to those who own or operate vans for business purposes. This could include:
- Cargo vans.
- Delivery vans.
- Wheelchair vans.
Like other types of commercial auto insurance, van insurance can be purchased by companies and/or employees (or independent contractors) who use these vehicles for business purposes. If you drive a van for work, make sure to ask your employer if their insurance extends to you, or if you need to purchase your own commercial auto insurance policy.
Van insurance typically isn't a single coverage. Instead, it's made up of a variety of coverages that can include:
- Liability insurance - This is the most commonly required type of car insurance. Chances are you will need this insurance to comply with legal requirements. Commercial liability insurance consists of:
- Bodily injury - Covers the medical-related costs of injuries to others after an accident caused by you or an employee.
- Property damage - Pays for the expenses to repair or replace other people's property if damaged in an accident caused by the operation of your business' vehicle.
- Collision - Covers damages incurred to your van in an accident.
- Comprehensive - Pays for your losses due to:
- Van theft.
- Other non accident-related causes.
- Uninsured/Underinsured - Covers your injuries and/or damages to your van that result from an accident with a driver who holds either no insurance or too little insurance.
- Some states require this coverage in addition to liability insurance.
If you're a business owner, you can extend your van insurance coverage to protect those commercial drivers or other employees who use your vans in a work capacity.
Keep in mind that if you use your van for business purposes, it likely will not be covered by your personal car insurance policy. Vans used for commercial purposes require completely separate insurance policies.
Purchasing Enough Van Insurance Protection
It can be difficult to determine how much coverage you need to safeguard yourself from costly accident damage claims and possible lawsuits. While most states require at least liability insurance, consider that your van is an important part of your business. You are going to want to keep it as well protected as possible.
After you get your commercial insurance quotes, you may also benefit from consulting with an insurance agent or other qualified financial professional. Be prepared to speak frankly about the following:
- The size of your business.
- The number of vans you own/drive.
- The number of employees you have.
- Your assets.
- Your company's financial strength.
Consider that commercial auto insurance becomes progressively cheaper the higher the amount purchased. For example, a $2M policy won't be twice as expensive as a $1M policy. Also, when considering additional protection, think about purchasing an affordable commercial umbrella policy that will kick in after you've reached your van insurance limits. This gives another layer of coverage additional financial security.