If your business relies on commercial vehicles for operations, investing in proper commercial van insurance is a must.
This type of coverage offers additional safeguards for your company’s assets and client’s goods, as well as liability protection in case a third party makes a claim against you.
1. Liability
Commercial Van Insurance shields you from liability, physical damage, and medical payments in the event of an accident. If you own a fleet of delivery vans or transport goods with your commercial van, having this coverage is essential.
Liability is an obligation owed by one party to another, derived from either the law or a contract. It may be enforced through criminal or civil laws.
Liabilities include tax liabilities, accounts payable, and bonds payable. Accounts payable are short-term financial obligations due within a year while bonds provide long-term financing sources that take longer to repay.
Other liabilities involve contingent liabilities, which arise from future events that could or might not take place depending on the outcome. Examples of contingent liabilities include product recalls, warranties, unused gift cards, or credit notes.
2. Physical Damage
Commercial Van Insurance provides financial safeguards against costly repairs caused by collisions and other types of damage to your business vehicle. It is usually included in a Commercial Auto Policy, but can also be added on voluntarily.
Physical Damage Coverage is the cornerstone of Commercial Van Insurance and one that every trucking company should have. It protects you from financial loss and even keeps your business open if you must replace a damaged vehicle.
Comprehensive coverage provides for the repair or replacement of your vehicle in case it’s damaged in an accident, regardless of who was at fault. It also covers damages caused by theft, fire, hail, vandalism, and more.
Collision coverage provides for the repair or replacement of your truck if it is damaged in an accident with another vehicle or object, including windshield repairs*. It may also cover damage caused by a hit-and-run or burglary.
Selecting the appropriate physical damage coverage for your business can be a complex decision, but it is an integral component of protecting both your vehicles and finances. By taking the time to understand all available policies, you will be able to find one that meets both your requirements and budget.
3. Medical Payments
Medical payment coverage is an invaluable way to safeguard yourself and your employees against costly medical bills. It also has the potential to shield your business in case of a lawsuit, provided that you have adequate insurance.
As with other aspects of commercial auto insurance, the amount of medical payments coverage you need depends on your requirements and budget. Typically, limits range from $1,000 to $25,000 per driver.
When purchasing a van insurance policy, the size, make, and model of your vehicle as well as how often it’s used all play a role in determining the cost. Some insurers even provide discounts for safe driving or having no claims bonus accrued.
Finding the appropriate amount of coverage for your business and budget requires speaking with a certified independent insurance agent. They can offer guidance on what’s most suitable for both you and your budget, plus they may be able to find you an optimal combination of policies that offer maximum protection at a low price.
4. Comprehensive
If you own a small business and use your van for commercial purposes, Commercial Van Insurance is essential. This type of policy can be customized to fit your requirements and budget perfectly.
Your premiums will be affected by several factors, such as your industry and how often you drive your van. Some insurers even use telematics to monitor mileage.
Another factor to consider is how many drivers you employ and their driving records. If you hire people with poor records, your rates may be higher.
You can save money on commercial van insurance by providing driving safety training. This will reduce your risk and make you a more appealing candidate to insurers.
When shopping for a commercial van insurance policy, it’s essential to comprehend the different types of coverage and their limitations. Speak with an agent about your coverage options and find one that meets your needs. It also pays to shop around and compare multiple quotes from different companies to get the best deal possible.
5. Collision
Commercial van insurance is a policy designed to safeguard you and your business in the event of a vehicle accident. It covers any costs for repairs or replacement, as well as any damages you or your employees may be legally obligated to pay in the event of an incident.
Van insurance policies should also protect your business’s assets, such as tools and equipment stored inside the vehicle. Unfortunately, this coverage is often not included with personal auto insurance; therefore, if you have valuable items inside your van, consider investing in a separate policy just for this purpose.
Another thing to consider is that the type of industry you work in can influence your rates. For instance, plumbers who frequently haul equipment will likely face higher insurance costs than tech start-ups making occasional deliveries.
When searching for a company to insure your fleet of commercial vans, it’s wise to shop around. Get quotes from different providers and read each one thoroughly. Your driving history as well as the size, make and model of your vehicles will all influence what type of premium you will pay for insurance.
6. Underinsured Motorist Coverage
Commercial Van Insurance is essential if your business relies on vans for product transport. A policy with liability, medical payments, and uninsured/underinsured motorist protection will safeguard you against the many accidents that could negatively affect the operation of your fleet vehicles.
When selecting a policy, make sure it meets your needs and offers plenty of discounts. For instance, you could potentially qualify for a lower rate if your employees complete safe driving training.
The size and use of your vehicle will also influence your insurance rates. For instance, a large food truck with a deep fryer will be more costly to insure than a small delivery van with minimal equipment.
New York requires you to carry a minimum of $50,000 in personal injury protection (PIP). PIP is your initial layer of auto insurance following an accident, covering any medical bills for drivers regardless of who caused it. You may add more PIP coverage for passengers if needed.
7. Uninsured Motorist Coverage
Uninsured Motorist Coverage is an add-on coverage that can pay for medical bills and other costs if you’re hit by a driver without auto insurance. Although not mandatory in all states, it can be an effective way to safeguard yourself financially in case of unexpected financial hardships.
No matter the size of your business or industry, having adequate vehicle coverage is essential for protecting both you and your fleet against damage. Commercial Van Insurance is one way to safeguard both your vehicle and business assets against loss.
Rates for this type of policy will depend on several factors, including the size and location of your business. What type of van you insure also impacts how much it costs.
Another way to reduce your rates is by offering safety training to new drivers. This demonstrates to insurers that you are taking measures to avoid accidents and that you genuinely care about those driving your vehicle.
8. Rental Reimbursement
If your business relies on a vehicle, then adding rental reimbursement coverage to your commercial auto policy might be beneficial. It pays for a loaner car while your business vehicle is being repaired after an insured loss.
Coverage under this type of policy usually pays out a set amount per day or up to an overall maximum. Make sure you speak with your agent to learn what exactly is included in your policy.
In some cases, your policy may automatically include this coverage so there’s no need to purchase it separately. Generally though, if you rely on your work-related vehicle daily and don’t have another alternative for transportation, then it may be worthwhile considering purchasing additional coverage.
Additionally, it can help alleviate the financial strain caused by an accident that requires time off work or living without a car while repairs are made. Furthermore, it helps you maintain your productivity while waiting for a replacement vehicle to arrive.
