In today’s tough economic climate most small businesses are feeling the pinch and are working to tight budgets. However, if a van is an important part of your business, there is one expense which is unavoidable – commercial van insurance.
Finding the right van insurance for the right price can be challenging for small businesses. This guide is designed to help you look at all the options and provide information you may need to make the right choice for your business.
Third party only (TPO)
This is the minimum amount of cover available for motor vehicles. It protects you against any damage you may cause to a third party (e.g. another driver or pedestrian).
It is worth noting that this level of cover does not provide financial protection for any costs that arise from damage to your own van; this will not be covered unless you are insured comprehensively.
Third party fire & theft (TPFT)
This level of cover can financially protect you in the event:
- Your vehicle is stolen
- Damage as a result of attempted theft
- Fire damage to your van; if the fire is a result of arson it is likely your insurers will require a crime reference number
- Damage caused to a third-party; please note this level of cover will not cover the costs of damage to your own vehicle
You may want to bear in mind, if you have TPFT cover, in the case of either a fire or theft you would receive the market-value of your vehicle or the amount you personally valued your vehicle at the time of insurance inception in compensation; you would receive which ever amounted to the lowest (minus your excess, if applicable).
Understandably, if you use your van for commercial purposes you may decide to opt for a comprehensive policy, which could cover you for the following:
• Liability (passengers included)
• Fire and theft damage
• Windscreen cover
• Medical expenses
• Accidental damage
• Replacement vehicle
• Loss or damage to the vehicle
• EU cover
• Claims assistance cover
Although this type of cover does offer you more in the ways of financial protection should you unfortunately need to claim, there are more specific covers which you may decide you need as a commercial vehicle owner, including:
Goods in Transit (GIT)
From time to time your van may carry tools, stock or expensive materials.
Goods in Transit cover could provide peace of mind when you are carrying expensive or a bulk of costly-to-replace items. To read more about Goods in Transit cover please visit our dedicated webpage.
Breakdown Cover & Replacement Vehicle
If your van is essential to the running of your business, having it out of action for a number of weeks may seriously affect your bottom line.
Breakdown recovery could become a lifeline for your business if you rely on your vehicle and need to keep moving.
Other things to keep in mind:
If your company has many drivers using the same vans you may decide topurchase multiple driver insurance.
Although some policies may cover all your employees automatically, others charge for each driver, so it is essential checking the small print to see which package suits you best.
Businesses travelling abroad
If you use your van to export goods outside the UK, you have to ensure your employees are insured to do so. Some policies require prior notification of travel so you may want to check with your insurance firm if this is the case.
Fleet insurance generally covers three or more vans and may offer better value for the business with extensive motor capital.
For more information please visit our van insurance page or call our helpful team on 08081686868 today.
Van and Vehicle Insurance
This guide is part of our series related to van and vehicle insurance, for more guides, or to get a quote, head over to our van insurance section.