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Commercial Van Insurance

Commercial van insurance, or business van insurance, is a type of coverage that protects you and your company in the event that your vehicle is involved or damaged in an accident. It will also cover any injuries you and your employees cause or sustain while driving. Commercial van insurance is used for business-operated vans and covers accidents that happen while on the clock. Pretty much any van you use to pull in income will be covered by this type of insurance. It is vital to have as it protects your business assets. But despite this insurance being necessary, going about figuring out what is best for your company can be tricky. The guide below gives you all the ins and outs of commercial van insurance so you can make the most educated purchase.

Who Needs Commercial Van Insurance?

If you run a company that relies on one commercial van or a whole fleet of vans in order to conduct business, then you need to have a commercial van policy. Auto insurance in some capacity is required for every vehicle on the road. Nearly every state has some law on the books regarding driving while insured. Commercial van insurance is especially important as it offers more coverage for both you, your employees, and your company. Personal auto insurance will not provide you with this same protection. More on personal auto insurance is explored in a later section.

If you run one of the following businesses, you should look into commercial van insurance policies:

  • Couriers
  • Florists
  • Caterers
  • Electricians
  • Plumber
  • Contractors

The careers listed above are just some industries that rely heavily on vans in order to either transport goods or provide services. What has been outlined is not a complete list of all the industries that need commercial van insurance. If you fall outside one of those careers yet use a van often for business purposes, you should be shopping for a van insurance policy.

Types of Vans Covered by Insurance

Van insurance will cover a variety of commercial vans, pretty much any type. Some common commercial vans include:

  • Cargo vans
  • Minivans
  • Step vans
  • Refrigerated vans
  • Box vans
  • Courier vans
  • Passenger vans
  • Shuttles

What Does Business Van Insurance Cover?

Commercial van insurance is designed to protect you, your employees, and your business in the event of an accident during work hours. This type of commercial insurance usually covers general liability and property damage, but there are ways to add-on coverage. Listed below are the types of coverage you can add to your policy:

  • Bodily Injury Liability - The first half of liability coverage. Bodily injury liability coverage pays for injuries you cause to another driver in a collision you are found to be at fault for.
  • Property Damage Liability - The other half of liability coverage. It pays for damage to the other party’s vehicle following an accident you have found to be at fault for.
  • Comprehensive Coverage - This will pay for damage to your commercial van it sustains following a non-collision-related incident. Some examples of this may include damage from extreme weather, theft, and vandalism.
  • Collision Coverage - Collision insurance pays for damage to your van following an accident with another vehicle, regardless of who was at fault.
  • Medical Payments (MedPay) - Medical payments covers any medical expenses you and/or your employees accumulate following an accident. It pays out no matter who was found to be at fault.
  • Uninsured/Underinsured Motorist Coverage - If you get into a collision with a driver lacking liability insurance, this coverage can help pay for property damage and medical expenses.

How Much Does a Commerical Van Insurance Policy Cost?

For a rough average, van insurance costs around $1,400 yearly. That’s about $117 per month for coverage. But like any other type of insurance, van insurance premiums are personalized. A number of factors go into deciding your annual rates. Things like what industry you are in and where your business is located will be taken into consideration by your insurer. Outlined below is a full look at what factors determine your insurance premiums.

  • Location - Where you operate your business will impact your rates. Being located in a place with dense populations and higher crime rates will increase your premiums.
  • Type of van - Make, model and year of the van(s) you are trying to insurance will affect your rates. Some vans are more to insurance than others.
  • Industry - What industry you are in will definitely affect your rates. Different industries come with different risks. For example, if you are a plumber who uses their vehicle often, especially for hauling equipment, you would pay more than a tech start-up who occasionally makes deliveries.
  • Usage - This almost goes hand-in-hand with the type of industry you are in. How much you use your van will impact your insurance premiums. The more you use it, the more you will likely be paying.
  • Driving records - Both you and your employees’ driving records will be taken into consideration when establishing your insurance premiums. If your driving record has a few accidents or speeding tickets, your premiums will be increased.
  • Coverage limits - How much coverage you want will either raise or lower your rates. More coverage means higher premiums and vice versa. But try not to get too hung up on this. You do not want to skimp on coverage just to save a few dollars a year.

What has been outlined above are just some of the factors your insurer takes into consideration when deciding your premiums. Some other things they will look at include your insurance claims history and miles on your van. More on how to save and lower your insurance premiums can be found in the next section.

Ways to Save on Insurance

While insurance is very necessary, you do not need to be breaking the bank for coverage. There are a number of steps you can take in order to go about reducing your insurance premiums. Some examples include:

  • Safety training - Providing driving safety training for your new hires can help lower your rates. It shows you are taking steps to make sure your employees are safe on the road and will most likely lead to fewer claims. Insurers try to estimate how much of a risk you will be to them if they choose to insure you. By doing safety training, you lower your insurability risk.
  • Shop around - One of the most important things you can do when it comes to insurance is to shop around. Pull multiple policies from a wide range of providers. This will also help you to compare rates and coverage to see who exactly has the plan that fits you and your business the best.
  • Bundling - Bundling insurance can get you a break on rates. Bundling simply means you have multiple types of insurances under one company. For example, you could purchase commercial van insurance and a business owner’s policy from one company. Most of the time, the provider will give you some discount on your premiums.
  • Hire safe drivers - As previously mentioned, driving records will definitely be looked into when you buy commercial van insurance. For this reason, it may be very valuable to you to hire safe drivers, especially if your business relies heavily on transportation. The fewer claims an employee has, the less you will be paying for coverage.
  • Discounts - Insurance providers may offer a wide variety of discounts. When you are going to purchase your policy, ask your insurance agent if you qualify for any. Some common auto insurance discounts include safe driving and paid-in-full discount. Check with your agent to see if they can be applied to your van insurance policy.

Commercial Van Insurance vs. Personal Auto Insurance

As previously mentioned, personal auto insurance will not be sufficient enough when it comes to protecting your business vans. This is mainly due to the fact that personal auto insurance cannot give you the same coverage limits as commercial van insurance. It will help keep you and your business off the hook financially in the event of an accident. If a collision is bad enough, the other party can sue your business, putting your finances at risk. While the coverage personal and van insurance offer may be nearly identical, it is the coverage limits that must be looked at. If you are using a van for business purposes, you need to protect it with a commercial insurance policy.

Other Commercial Insurance For Your Business

Operating a business comes with a lot of responsibilities. One of those includes making sure your company has all the proper insurance coverage it needs to run successfully. Commercial van insurance is just one aspect. Listed below are other commercial insurance policies you need to consider when establishing your company.

  • Commercial Auto Insurance - If you use any other type of vehicle to conduct business, you need to protect it with commercial auto insurance. Commercial vehicle insurance will apply to vans of any kind.
  • Workers’ Compensation - For your driver, workers’ compensation will help cover medical expenses and lost wages (at a reduced rate) in case they are hurt while on the job.
  • Commercial Property Insurance - If you own or lease a brick and mortar for your business, commercial property insurance is necessary. It will protect your business assets and equipment stored at your storefront.
  • Inland Marine Insurance - Most of the time, what is kept in your van will not actually be covered by insurance if it is not a permanent feature. So, if you’re lugging around equipment, it may be vulnerable if you get into an accident. Inland marine insurance can step up in order to fill that gap in insurance coverage.

Get a Van Insurance Quote Today

Ready to get a commercial van insurance policy? Contact us today to get a free commercial van insurance quote. Make sure you let us know your zip code, details of your business, and information on your van. By providing us with all this, we can get a better idea of the coverage you need. Quotes are available either at one of our many locations or online in just a few clicks via our website and mobile app. We are also just one call away. Get your commercial vans insured today and drive worry-free tomorrow.

*This product may not be available in every state, please call an agent for more information.