Business van insurance

Business van insurance, also known as commercial van insurance, is designed to cover your van if you use it for work purposes.

Commercial van insurance offers the same cover as personal van insurance but will also cover you for accidents while using the van as part of your business. For example, when you’re delivering or transporting goods, or travelling between work sites.

Depending on the policy you choose, commercial van insurance can also include financial protection for the tools and equipment you carry in your van. And it could include extras like breakdown assistance and use of a courtesy van to keep your business up and running.

If you’re a business owner or self-employed and you use your van for work, you’ll need commercial van insurance. This includes commuting to or from more than one job site.

If you only use your van for social, domestic or pleasure reasons, private van insurance can cover you. That means you won’t need a business van insurance policy for things such as hobbies, shopping, camping trips or taking the dogs out.

If you only use your van to commute to a single place of work and not for business, then you may be covered by a social and commuting policy. But check with the insurance provider.

Many insurance providers insist on a commercial van policy to cover commuting.

If you’re involved in an accident, your claim can be rejected if your insurance provider discovers you haven’t been truthful about how you use your van. That means any business use must be declared.

Van insurance for business is designed to protect your livelihood. It does this by  minimising financial losses if your vehicle is damaged or stolen.

It can cover you if your business includes delivering goods, haulage or using your van as part of your trade. So whether you’re a plumber transporting your tools between jobs or a florist using your van to deliver flowers to customers, business van insurance is essential.

If you’re a business owner with multiple vans and drivers working for you, it might be more cost-effective to take out fleet van insurance. That allows you to cover them under one policy.

You can compare business van insurance quotes with us for UK-registered vans weighing up to 3.5 tonnes. The type of policy you need depends on how you use your van for work:

Carriage of own goods

A carriage of own goods van policy offers cover if you use your van to carry business goods. For example, tools, equipment or inventory that belong to you, as a sole trader, or your company.

This could be tools if you’re a builder, plumber or carpenter, or lawnmowers or strimmers if you’re a landscape gardener. You’ll also be covered for commuting and private use.

Carriage of goods for hire and reward

A carriage of goods for hire and reward van policy offers cover if you use your van to carry someone else’s goods for payment. It’s typically used by delivery drivers and couriers. You’ll also be covered for private use.

Haulage

If you travel long distances to make a single delivery, you may need a policy that specifically covers haulage. Insurance providers have different definitions of what counts as haulage so check the terms to make sure you get adequate cover.

Goods in transit cover

If you transport goods for customers, check if your van business insurance policy covers the contents of your van if it’s stolen or damaged in an accident. If it doesn’t, you may need additional goods-in-transit insurance.

If you’re delivering for a business, check whether their company van insurance covers you before adding extra cover.

Exactly what’s covered depends on the policy and the level of cover you choose. However, van insurance for business could cover:

• Damage to other people’s vehicles, property and possessions following an accident

• The cost to repair or replace damage to your own van after an accident

• Theft of your van or loss due to fire or vandalism

• Loss, theft or damage to personal belongings in your van

• Medical expenses for you and your passengers following an accident

• A personal accident payout if you or your passengers suffer a life-altering injury in an accident

• Your legal expenses if someone brings a claim against you after an accident

• The cost to replace your tools and van contents if they’re stolen or damaged in an accident

• Using your van for work and for social and domestic reasons outside of work hours.

Cover levels and inclusions vary. Check the terms of any policy carefully before you buy.

There are some common exclusions to be aware of with business van insurance in the UK. For example, a commercial van policy typically won’t cover:

• The carriage of passengers for hire and reward – for that, you’ll need taxi insurance

• Theft of your van if it wasn’t secured properly, for example if you’ve left doors unlocked, windows open or the keys in the ignition

• Using your van for a purpose that isn’t covered by your policy

• Letting someone drive your van who isn’t covered by your policy

• Mechanical or electrical breakdown

• Damage caused by wear and tear 

• Goods or stock left in the van, if they’re not insured.

Check the policy exclusions carefully to make sure you don’t invalidate your cover.

It’s up to you to decide what level of cover to choose, depending on your business needs and your attitude to risk. As with all types of motor insurance, there are three main levels of business van insurance cover you can get:

Third-party only van cover

Third-party only insurance is the minimum legal requirement. It can cover any damage you cause to another vehicle and any injuries you cause to other people. It won’t cover your own van, though.

Some commercial van insurance providers no longer offer third-party only cover.

Third-party, fire and theft van cover

Third-party, fire and theft offers the same level of protection as a third-party policy, but also covers you if your van is stolen or damaged by fire.

It doesn’t cover accidental damage to your own van, and typically does not cover equipment or goods transported inside your van.

Comprehensive van cover

Comprehensive cover includes all the benefits of third-party, fire and theft. It can also protect you as a driver and pay out for any damage to your van, even if the accident was your fault.

You can often tailor your commercial van insurance to cover against other issues that could affect the running of your business. You might want to consider these optional extras (for an additional cost) when comparing business van insurance:

Tools in transit cover

If you need expensive tools and equipment to do your job, you’ll want to make sure they’re covered for theft, fire or damage. If it’s not included as standard, you may be able to add it on to your policy or take out standalone tools in transit cover.

Check the cover limits to make sure it’s enough. And be aware that some policies won’t cover your tools if you leave them in your van overnight.

Windscreen repairs

Windscreen cover can pay for repairs to your windscreen if it’s cracked, chipped or smashed.

Misfuelling cover

Misfuelling cover could protect you from the cost of draining your tank, or repairing the damage caused, if you put the wrong fuel in your van.

Cover for your trailer

A standard business van insurance policy may cover you to legally tow a trailer with your van, but it may not cover the trailer itself. You may be able to add on cover for a stolen or damaged trailer if that’s important to your business.

Breakdown cover

Breakdown cover typically includes roadside assistance and recovery for your work van if it breaks down. It can help get you back on the road and back on the job quickly.

Replacement van

If you rely on your van for work, courtesy van cover can provide a replacement vehicle to use while yours is being repaired after an accident.

Lost keys cover

Lost key cover can cover the cost to get your van keys replaced if they’re lost or stolen.

Protected no claims discount

If you’ve built up a few years of no claims bonus, it could be worth paying a little extra to protect it. It means you won’t lose your hard-earned discount if you need to make a claim.

Some of these might be included with a standard policy, so always check you’re not doubling up on cover. And compare business insurance van quotes to make sure you’re getting the cover you need at a competitive price.

At Compare the Market we compare business van insurance from a range of providers. Compare quotes with us and see if you could save on cover for your work van.

The cost of business insurance for vans depends on a range of factors, including:

• 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 consider some businesses riskier than others

• What you use your van for – if you’re carrying your own tools and equipment or delivering goods for another company

• The make and model of van – you tend to pay more for larger or expensive vans, with more powerful engines  

• Where you keep your van overnight – secure off-street parking can help lower your premiums.

Your annual mileage and the amount of voluntary excess you choose to pay towards a claim can also influence the cost of your premium.

Your premiums are typically also based on factors such as your age, where you live and work. And they can depend on the claims and driving history of you and any named drivers you add to your policy.

There are steps you can take to cut the cost of commercial van insurance.

• Improve your van’s security – installing extra security features like an immobiliser, heavy-duty locks or a GPS tracker could make your van less tempting to thieves

• Find a secure place to park – where you park your van overnight could have an impact on your premiums

• Build up your no claims discount by driving safely

• Install a dash cam – you may be able to use the footage to prove your innocence in an accident and avoid losing your no claims discount

• Join a trade body – check with your insurance provider first to see if it could earn you a discount

• Carefully consider named drivers – depending on their experience level and driving history, it could bump up or lower your premium 

• Pay annually – if you can afford to, paying for your policy upfront rather than monthly means you won’t be charged interest on your premium payments

• Choose a higher voluntary excess – just make sure you can afford to pay both the compulsory and voluntary excess if you do need to make a claim

• Only get the cover you need – carefully consider any add-ons and how useful they’re likely to be, and make sure you’re not doubling up on cover

• Shop around – compare business van insurance quotes to see what your options are.

Getting a commercial van insurance quote is quick and easy. You’ll need to give us some details about you and your work van, including:

• Information about your van, including the registration number

• How you use your van

• What type of cover you’re looking for: for example, carriage of own goods or haulage

• The level of cover you’re looking for

• Your estimated annual mileage

• Details about you and any named drivers you want to add to the policy.