Business van insurance

Business Van Insurance – Why is it so important to get the right insurance policy

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Insuring your van is not only vitally important in protecting your business, it is also a matter of legal and social responsibility. Making sure that you have the right business van insurance cover in place will give you peace of mind.

As well as covering you for the cost of replacing or repairing your vehicle, should you need to, the right insurance provides financial protection in the event of personal injury. This means that if you are unable to work following an accident, your income will be protected.

The details of insurance policies and what they cover can vary enormously, so it’s really important to read the small print and consider your individual needs carefully before taking out a particular van insurance policy. Here are four points that it pays to keep in mind when it’s time to insure your van.

1. Business Van Insurance is a Legal Requirement

It is laid down in the Road Traffic Act that all drivers have a legal obligation to have insurance cover if they are on the road. This isn’t just about protecting yourself; the aim is to protect any other parties who could be affected in the event of an accident. As such, your business van insurance must include cover for damage and injury to other drivers. This is one reason why such severe potential penalties exist for the uninsured driver. Failure to comply could lead to your van being seized and destroyed, penalty points, a fixed penalty or unlimited fine (if it goes to court) and disqualification from driving which could easily put you out of business.

2. Business van insurance protects your livelihood

Beyond the legal requirements, being incorrectly insured is a big risk for you and your business. If your van were to be seriously damaged or written off, it would have a major impact on your day to day business and lead to a loss of income. If you were to be injured or lose your life while uninsured, the consequences for you and your loved ones would be catastrophic.

3. Cover for another vehicle won’t cover your van

Remember that commercial van insurance works differently to other forms of car insurance. You may be insured to drive a van of a certain registration number only, for example, and it is unlikely to be covered to be driven by anyone else. Nor will holding fully comprehensive cover on another vehicle give you any business insurance cover for your van. No claims discount entitlements may also work differently, depending on the policy.

Different vehicles need different levels of cover

You need to think about both the type of van you drive and its specific use to identify the appropriate business van insurance cover to suit your business. Here are some points to consider:

* Personal or private van insurance does not cover work vehicles, and would leave you effectively uninsured.

* Work vehicles include those used to transport tools, pick-up vans, catering vans, and many more, all of which will have different requirements.

* All reputable insurance companies are authorised and regulated by the Financial Conduct Authority.

* Young driver insurance can be much more expensive and it may be worth looking into sharing your insurance with a driver who is older in order to keep your premiums at affordable levels.

One final point that needs emphasising is that you should make sure that you don’t buy too much cover and end up paying more than you actually need to. For example, if your business insurance already includes tools cover or breakdown cover, then make sure you aren’t charged an additional premium for tool protection or roadside assistance elsewhere.

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