What does commercial van insurance cover?
Commercial van insurance policies cover various potential uses. Here’s when drivers might need commercial vehicle coverage:
A business owns a fleet of cargo vans.
A business uses minivans to handle deliveries.
A business owner picks up supplies to keep operations running smoothly.
A religious organization uses passenger vans to transport people.
Any kind of business can use vans as a part of its operations. But some businesses that use commercial vans include florists, tradesmen, painters, plumbers, carters, couriers, childcare services, and more.
The type of van you drive at work isn’t the issue, it’s the fact that you’re driving it for work. So whether you’re driving a cargo van or a basic car for business use, you’ll need commercial insurance.
What are the types of commercial van insurance coverage?
Commercial van insurance coverage options vary based on the insurer. But here’s a look at the most common coverages:
Bodily injury liability: Bodily injury liability coverage will help cover the cost of injuries a driver causes with the work vehicle. Many commercial policies have higher liability limits than personal policies.
Property damage liability: If a driver causes property damage to someone else’s property during the course of business, this coverage will help pay for repairs.
Collision coverage: If the work vehicle is in an accident, this coverage will help pay to repair or replace it. This can help keep your business running smoothly.
Comprehensive coverage: Comprehensive coverage helps repair or replace your vehicle after something other than a collision occurs. For example, damage due to a fire, natural disaster, vandalism, or theft might be covered.[4]
As you choose a policy, you’ll likely have the option to add on coverage like personal injury protection (PIP), MedPay, and uninsured/underinsured motorist coverage. Business owners must decide what level of coverage they feel comfortable with.[4]
Are you required to have commercial van insurance?
Auto insurance is a legal requirement to drive a car on public roads in most states. If you’re using a vehicle for business purposes, your personal auto insurance policy won’t cover it. Since most states require a minimum amount of liability coverage for your time on the road, commercial van insurance is unavoidable.
The minimum coverage amount for commercial van insurance varies by state. If you aren’t sure what your state’s requirements are, check with your state’s DMV.[4]