If your business relies on vans to transport goods between locations, then investing in commercial van insurance is a must. Make sure your van is insured against damage or theft so that it can stay mobile.
A great way to reduce your insurance costs is by shopping around for quotes. Reputable providers will offer a range of options and discounts that can help you save on your policy.
1. Liability Coverage
Commercial van insurance is a type of business auto policy that protects you and your company’s vehicles in case an accident occurs. Whether you run a plumber’s van or courier driver for hire, having this coverage is essential to keep your operation running efficiently and safely.
Liability coverage is the cornerstone of commercial van insurance policy, as it pays out for third-party damage and injuries. Almost all states require this level of coverage, so make sure you get it set up before taking your van out on the road.
Commercial van insurance costs vary based on several factors, including the type of vehicles you own, where your business is situated, and what industry you operate in.
Sprinter vans typically come with collision insurance included in the policy, but it’s wise to add comprehensive coverage too for extra protection. Collision coverage covers repairs or replacement costs for dented bumpers, cracked headlights, scratched or damaged panels, and chassis as well as any related costs.
This policy also covers tire damage that results from collisions with another vehicle or an object on the road. It has a $1 million per occurrence limit and a $2 million aggregate limit.
2. Physical Damage Coverage
Physical damage coverage safeguards the value of your company-owned or leased vehicles from unexpected losses. In case you get into an accident or have your car damaged due to fire or theft, physical damage coverage can pay for repairs and replacements.
Opting for physical damage coverage is a critical decision for businesses that rely on fleet vehicles. Typically, the cost of physical damage insurance is less than what would occur if you weren’t insured.
You may be able to reduce the cost of physical damage premiums by selecting higher deductibles. This is particularly advantageous if you own or lease many company-owned or leased vehicles.
Physical damage coverage comes in three basic forms: Comprehensive, Specified Causes of Loss, and Collision. Collision coverage is the most popular commercial vehicle type and pays for loss resulting from a collision with another object or vehicle overturning. Other causes of loss such as theft, vandalism, fire, and earthquakes may also be covered under Specific causes coverage; sometimes combined with Comprehensive insurance to provide greater protection.
3. Medical Payments Coverage
Commercial van insurance typically includes medical payments coverage (MedPay), which helps pay medical expenses for you and any passengers in case of an accident.
Scenario One: As you’re driving your commercial van to the pizzeria, an accident with a truck occurs and leaves your arm hurt from the impact.
Your health insurer tells you your deductible is $1,000, but your car insurance covers the rest of your x-ray and cast bill. Congratulations! You feel satisfied!
Your insurance company may cover part of your legal fees if you’re involved in an accident and file a claim with the at-fault driver’s insurer.
Some states require drivers to purchase medical payments coverage, while others offer it as an optional add-on. If your state requires it or you have the option to purchase it, consider adding this additional protection to your commercial auto insurance policy.
4. Collision Coverage
Commercial auto insurance is essential if your business owns any fleet of trucks, trailers, or vans. It provides coverage in case of collision, theft, fire, or vandalism as well as other covered events.
Collision coverage is an integral part of commercial vehicle policies and may even be required by your state’s law. It protects your car in case of a crash, even if another driver was at fault for it.
The cost of commercial van insurance will depend on a few factors, including your business location, the make, and model of your vehicles, as well as how often they are used. The most efficient way to save is by shopping around for the lowest price.
In the end, what you need is the ideal combination of coverage and protection tailored to your requirements. With some careful shopping and research, you’ll have peace of mind to focus on running your business. From there, it’s up to you to find the ideal commercial van insurance plan tailored specifically for your unique business.
5. Comprehensive Coverage
Commercial van insurance is essential for businesses that rely on a fleet of vehicles. It safeguards your company’s assets in case of collision or other damage to the vehicle and its contents, as well as offers coverage to employees in case of traffic-related incidents.
Saving money on premiums is easy when you shop around for coverage. Doing this ensures you receive the most competitive rates tailored to your circumstances and needs. Furthermore, it gives you a chance to compare companies’ offerings and ensure you’re getting the most comprehensive van insurance for your money.
Finding the ideal van insurance policy requires careful consideration and research. Factors like vehicle type, size, cargo carried, and industry all come into play when calculating premiums; for instance, a plumber using their van for hauling equipment will likely pay more than a tech startup using it for deliveries. Mileage also plays a role in determining costs; furthermore having a good driving record helps secure you the lowest rate possible.
6. Uninsured/Underinsured Motorist Coverage
Uninsured/Underinsured Motorist Coverage is an affordable way to safeguard your business in case of an accident. Your insurance agent can assess if it’s necessary for your company, and what limits would be most beneficial.
Uninsured/Underinsured motorist coverage (UMC) provides medical bills, lost wages, and other costs related to injuries sustained from a collision with an at-fault driver who is uninsured or underinsured. It also shields you against losses caused by a hit-and-run incident.
Underinsured/Underinsured Motorist Coverage (UMC) offers protection in such instances. UM pays for medical costs, lost income, and other expenses if an at-fault driver’s liability limits are lower than the value of damages sustained.
Depending on your state of residence, uninsured/underinsured motorist coverage may be included in a commercial van policy or available as an optional extra. If you decide to add this protection, make sure the limit selected is high enough to cover expenses resulting from accidents with commercial vans.
7. Hired and Non-Owned Vehicle Coverage
If your company utilizes hired vehicles to transport employees, having hired and non-owned vehicle coverage is a wise idea. This insurance protects you in case an employee gets into an accident in personal auto and sues your business for expenses associated with it.
Commercial van insurance policies can be enhanced with this type of coverage as an endorsement, potentially saving you money over purchasing a separate policy for this purpose.
To determine whether this is the best option for your company, speak with a commercial auto insurance agent. They will assess whether your business requires this coverage and help you purchase it at an appropriate amount.
Your van insurance premiums will vary based on several factors, such as where your business is situated, the make and model of the van you own, what industry you operate in, and your driving record. Generally, businesses located in more populated areas with higher crime rates typically face higher insurance costs.
8. Commercial Property Coverage
Business property coverage is essential for protecting your belongings if you own or rent a space. This type of policy pays to replace or repair damage caused by covered issues like fire, theft, or weather that affect the building or equipment you own.
Commercial property insurance premiums vary based on the value of your assets and property. For instance, insuring a home office that’s only occasionally used would be less costly than insuring an entire office for a technology start-up.
Commercial property policies provide for property damage as well as fire protection, flood protection, windstorm protection, and more. Selecting the right coverages is crucial for your business’s financial well-being; a Farmers agent can assist in selecting what meets your requirements best.
Investing in the right commercial property insurance policy for your business is a wise decision that will provide you with peace of mind and protect your investment. Contact us today for an obligation-free, honest discussion of your requirements and a policy recommendation tailored specifically to fit.