Van insurance for small business owners

What is Small Business Van Insurance?

First, let's define what we're talking about. Small business van insurance is, as the name suggests, an insurance policy designed specifically for vans that are used for business purposes. If you use your van for any form of commercial activity - be it transporting goods or providing a service - this is the policy for you.

Companies you get quotes from may include these top ones:

Small Business Van Insurance Vs. Personal Van Insurance

You may be asking, "Why can't I just stick with my regular, personal van insurance?" Well, here's the rub: Personal van insurance and business van insurance cover different risks.

Personal van insurance primarily provides cover for 'social, domestic and pleasure' use. That includes everyday activities like driving to the supermarket or taking the kids to school. If you're using your van for anything business-related, such as making deliveries, transporting tools or materials, or driving to multiple work locations, you’ll need a different type of insurance – that’s where small business van insurance comes in.

Why Does It Matter?

Firstly, it's illegal not to have it if your van is used for business purposes; getting caught for driving with insufficient insurance is the same as driving with no insurance. Also, if you have an accident whilst using your van for business and you only have personal van cover your insurer might not pay for your claim. That's a scenario that could leave you significantly out of pocket. Having the correct insurance ensures you're covered for all aspects of your van use

The Perks of Small Business Van Insurance

So, why is small business van insurance such a boon for businesses? First off, it offers peace of mind knowing you're fully covered for your business activities. You can go about your day-to-day operations without worrying about what might happen if you have an accident; or get stopped by the law.

But there's more to it than that. Small business van insurance can also include cover for the goods you carry. This is called Goods In Transit cover and it protects the items you're transporting for work, in case they get damaged or stolen. It can be a godsend, especially for those in the courier business or other transport services.

Customising Your Cover

Another great thing about small business van insurance is how adaptable it is. Businesses are not all the same, and your insurance shouldn't be either. You can add various extras to your policy depending on what you need. These can include things like breakdown cover, legal expense cover, and windscreen cover, among others.

Hire and Reward Cover

Speaking of customisation, if you're using your van to transport other people's goods for a fee, or if you're operating a taxi service with your van, you'll likely need 'Hire and Reward' cover. This type of insurance is specifically designed to cover the risks associated with these activities, which aren't included in standard small business van insurance policies.

How to Get the Best Deal

We all love a good deal, and when it comes to small business van insurance, there are several ways to make sure you're getting the most bang for your money.

Firstly, make sure you're only paying for what you need. Carefully consider the risks your business faces and choose the add-ons accordingly.

Also, make sure that your vehicle's details are accurate and up-to-date. Factors such as the size, type, and security features of your van can affect your premium.

Choosing the Right Level of Cover

One of the key considerations when purchasing small business van insurance is determining the level of cover that is appropriate for your business needs. In the UK, you have three main options:

• Third-party only: This is the minimum level of insurance required by law. It covers the cost of compensating other people for injury or damage you cause. It doesn’t provide you with any financial help for injury or repairs to your vehicle.
• Third-party, fire and theft: This includes third-party only cover, with added protection against your vehicle being stolen or damaged by fire.
• Comprehensive: This provides the same cover as third-party, fire and theft, but also includes cover for any damage your van sustains, and potentially some form of cover for personal injuries.

The Impact of Your Business Type

The nature of your business can significantly influence the type and cost of your van insurance. If you are in a profession that requires you to carry expensive equipment or high-value goods, the cost of your insurance may be higher due to the increased risk. Similarly, if you operate in an industry where the van is at a higher risk of damage - for example, construction or landscaping - you may also face higher premiums.

Keeping Costs Down

Whilst it's important to have the right cover, we all appreciate saving a few quid. Here are a few ways you can potentially reduce the cost of your small business van insurance:

• No Claims Discount: Similar to personal car insurance, the longer you go without making a claim, the bigger your discount will be at renewal.
• Increase Voluntary Excess: Agreeing to pay a higher voluntary excess could make your overall premium cheaper. But remember that this amount is what you'll have to pay towards a claim, so don't agree to an excess you won't be able to afford.
• Secure Your Van: Installing extra security features such as an alarm, immobiliser, or a tracker can reduce the risk of your van being stolen - and can lower your premium.
• Accurate Mileage: Make sure you accurately estimate your mileage for the year, as overestimating could cause you to pay more than necessary.

Final Thoughts

In conclusion, if you're a van driver for a small business, it's essential to get the right kind of insurance. Regular personal van insurance won't cut it if you're using your vehicle for business purposes. By understanding the differences and considering the unique requirements of your business, you can ensure that you get the right cover at a price that suits your budget.

Remember, it's not just about finding the cheapest deal. It's about finding a policy that gives you enough cover for your specific needs. As they say, you get what you pay for! So get quotes right away - it may cost less than you think.