What is business van insurance?

Business van insurance, also known as commercial van insurance, is a van insurance policy specifically for commercial vehicles used for business purposes. They can include the same things as a personal van insurance policy, but will also cover you for accidents while using the van as part of your business, like for delivering or hauling goods.

How does commercial van insurance work? 

If you’re a business owner, or self-employed, who uses their van for work, you’ll be responsible for making sure your van is insured. A regular, private van insurance policy won’t cover you while using the van for business reasons, so you need to make sure you take out a business van insurance policy. 

With the right business van insurance policy, you’ll also be covered for using your van for work. This will include things like delivering goods, haulage or using your van as part of a trade. If you’re a business owner who has multiple vans and drivers working for you, you should consider fleet van insurance to cover them under one policy. 

What does business van insurance cover? 

What your business van insurance will include depends entirely on the level of cover you take out. Just like a standard van insurance policy, there are three main levels of cover: 

  • Third party only – the minimum legal requirement. Third party insurance covers you for any damage you cause to other people and their vehicles. But it won’t cover repairs to your own van, your own medical expenses, or theft from your van.
  • Third party fire and theft – offers the same level of protection as above, but third party fire and theft also covers you if your van is stolen or damaged by fire.
  • Comprehensive – includes all the benefits of third party fire and theft, and comprehensive cover can also protect you as a driver and pay out for any damage to your van. 

As well as the level of cover you’ll receive, there are also different types of business van insurance. 

What types of business van insurance are available?

You can compare quotes with us for two types of commercial van insurance for vehicles up to 3.5 tonnes:  

  • Carriage of own goods: This can cover you if you use your van to carry business goods – say, equipment related to your trade if you’re a builder, plumber, gardener or carpenter. You’ll also be covered for social, domestic and pleasure use. 
  • Haulage (carriage of goods for hire and reward): This type of insurance can cover you if you use the van to carry someone else’s goods for payment – for example, if you’re a delivery driver. Again, you’ll be covered for social, domestic and pleasure use. 

Always check your company van insurance policy to see if it covers the contents of your van if they’re stolen, or if you have an accident. If it doesn’t, you may need additional goods-in-transit insurance. It’s also worth seeing if the company you’re delivering for covers you.  

Neither of these types of insurance cover the carriage of passengers. For that you’ll need specific taxi insurance.  

Do I need business insurance for a van?

It depends on how you use your van. If you only use it at weekends or for social visits, you’ll need social, domestic and pleasure cover. But if you use your van for work in any way, including travel to or from more than one location, you’ll need commercial van insurance (also known as business van insurance). This kind of insurance will help make sure your business runs smoothly should you have an accident, or your van is stolen.

Frequently asked questions

Does my business van insurance cover my tools and equipment?

Van insurance doesn’t usually include as standard any cover for tools and equipment stolen from your van or damaged in an accident. But most insurance providers will let you insure them either as an add-on or under a separate policy. This is worth looking into because in the UK, vans are broken into every 23 minutes.

Just be aware that some policies won’t cover your tools if you leave them in your van overnight. You’ll find more information in our guide, Does my van insurance cover tools?

What should I look for in business van insurance?

Depending on what’s important to you, you might want to consider the following:

  • Windscreen cover – some insurance providers include windscreen cover as standard; others add it as an optional extra.
  • Misfuelling cover – filling your van with the wrong type of fuel can be a costly mistake, as you’ll have to pay for the tank to be emptied and the fuel properly disposed of. Then you’ll need to refill the tank. Misfuelling cover is typically available as an optional add-on.
  • Trailer cover – this covers you for loss of, or damage to a trailer.
  • Breakdown cover – if you rely on your van for work, breaking down on the way to a job could mean your business suffers lost revenue. Breakdown cover could help you get to the job in-hand.
  • Courtesy van – this might prove invaluable if your van is out of action for any reason.
  • Lost keys – losing the keys to your company van can be hugely inconvenient. Lost keys cover can pay for replacing them.

Is business van insurance more expensive than regular van insurance?

It depends on what sort of work or business you do. Business van insurance could be more expensive than regular van insurance, if you’re using the van to deliver valuable goods, as your van would be more attractive to potential thieves, increasing the risk of you needing to make a claim. Haulage cover is similar, and could be even more expensive, depending on how valuable the goods you’re transporting are.

How much does business van insurance cost?

The cost of your business van insurance depends on a range of factors:

The size of your van – a larger van will probably cost more to insure than a smaller one The type of business you run – insurance providers see some as riskier than others Where you keep your van overnight

Your mileage and the amount of voluntary excess you choose to pay will also influence the cost of your premium.

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Business van insurance for multiple vans

If you’ve got multiple vans being used for your work, you’ll need to insure them all. You could do this with individual policies, but a fleet van insurance policy could save you a lot of time and hassle. Insuring all your vans under one policy makes them easier to manage, with one point of contact. You could even get a discount for insuring multiple vans with the same provider.

What do I need to get a business van insurance quote?

Getting a quote is quick and easy. You’ll just need to give us some details including:

  • Information about your van, including the registration number or the manufacturer and model
  • How you use your van
  • What type of cover you’re looking for
Author image Dan Hutson

What our expert says...

“If you rely on your van for business use, it’s essential to make sure it’s covered properly. Make sure you get the right level of cover and all the add-ons you need.”

- Dan Hutson, Head of Motor insurance