Who Needs Commercial Van Insurance? [Ultimate Guide]

Who Needs Commercial Van Insurance [Ultimate Guide]

Who needs commercial van insurance? Let’s cut straight to the answer. Everybody who uses a van for anything beyond personal reasons like grocery shopping and road trips needs commercial van insurance. Plus, it is mandatory by law.

This article talks in-depth about commercial van insurance. What types of vehicles does it insure, who needs commercial van insurance, and much more. We promise by the end of the article, you will know all you need to know about commercial van insurance.

So, first, let’s start with what types of vans this insurance covers.



Types of Commercial Vans Covered By The Insurance

Vans are generally very varied in their form. They can be as small as courier vans and as big as step vans. However, their uses are very diverse; their coverage needs are almost the same. Most of them mainly need liability and collision coverage. Further, if you want, you can purchase coverage for their respective goods separately.

So, the types of vans covered are:


#1: Cargo Vans

One of the most common types of vans. It has space at the back, and cargo fills this space.


#2: Passenger Vans

As the name says, this van transports people; generally, 12-15 people can come in it.


#3: Refrigerated Vans

This van is refrigerated and transports perishable goods like fruits and vegetables. It comes in all sizes, from small to big.


#4: Box Vans

Box vans are big box-shaped vans. Those vans you see transporting Coke crates are called box vans.


#5: Courier Vans

These are smaller in size and used to deliver small parcels and couriers.


#6: Mini Vans

These are small vans and transports both people and goods.


#7: Step Vans

Step vans are made such that the driver can enter and exit the van at ease.

You can insure many more van types like Utility Vans, Delivery Vans, Sprinter Vans, Wheelchair Van, and more under this insurance.

Also read: Here Is The 5 Best US Auto Insurance Companies List!



Who Needs Commercial Van Insurance?

Now, let us arrive at the most important question, who needs commercial van insurance?

Anyone who uses the vans for their business use, like delivering goods or couriers or transporting people, carrying their own tools, etc., needs insurance. You need commercial van insurance even if you are using that vehicle to reach people’s homes or offices for providing service. But you do not need it if you only use your van to commute to and from your office. Get the difference?

Thus, you need commercial van insurance anytime you use your vehicle for business, and it is mandatory by law. Also, according to law, your personal vehicle policy will not cover you here. And even if it did protect you, it will not be enough as it is not designed for it.

Mixed-use situations are also not covered by your personal policy.

Examples of people who would benefit from the policy are:

  1. Couriers
  2. Electricians
  3. Plumbers
  4. Florists
  5. Caterers
  6. Expeditors
  7. And many more.



What Are The Types Of Coverage For Commercial Van Insurance?

Commercial Van Insurance provides coverage from all the losses you might have to endure if you do not have a policy. Let’s say your van hits another car. You have to pay for the medical expenses and many other expenses from your share of profit. These expenses can be detrimental to your business. But insurance is the way out.

So, let’s see the various types of coverage that commercial van insurance provides:


#1: Property Damage Liability

Roads are a dangerous place, and an accident can happen anytime. Your van can damage another vehicle or, in fewer cases, guardrails, buildings, telephone poles, etc. If you do not have this coverage, you will have to pay for these expenses from your pocket.

Also read: What type of travel insurance will you need?


#2: Bodily Injury Liability coverage

Apart from property damage, another liability you have is medical. In case an accident results in an injury to the person you hit. You are liable to pay for his medical and other related expenses. Injuries can be grave and can cost you fortunes. Thus, this coverage becomes essential.


#3: Physical Damage Coverage

The above two coverages protect the interests of the other party. But what about your van? Physical damage coverage protects your van from any physical damage during an accident. And not only a road accident, but this coverage also protects from fire, theft, vandalism, etc.


#4: Medical Payments Coverage

If an accident occurs, both parties get injured. Liability coverage has got the other party covered, and this one will protect you. This coverage covers the hospital bills and additional related costs. And both the driver and the passengers get the coverage.


#5: Uninsured and Underinsured Motorist Coverage

Although liability coverage is mandatory by law in most states, few motorists do not take up insurance or keep the coverage very low. If an accident happens, the other guy is at fault and is underinsured or uninsured; he will not pay you the expenses. You will have to pay from your pocket. This coverage ensures that you get all your costs and not part away from your profit.

Lastly, if you are a contractor who uses his van for deliveries, you should ask your employer what coverages he provides. For example, he may provide coverage on goods and liability coverage when you are working for him. And you may only have to buy the rest of the coverages.

Also read: Is an accident covered in term insurance? [Ultimate Guide]




So, this was all in our guide about who needs commercial van insurance. Concluding, we can say that anybody using their vans with business intent needs commercial van insurance. Be it a sole proprietor or a vast business; all need this policy. The policy not only protects you but also gives you peace of mind to help you concentrate on your business.

 We hope you liked this article and that it was informative. Lastly, if you have any questions buzzing in your mind, pop them in the comments section below. We will be glad to answer.