As a van owner, it is extremely important that you have adequate insurance cover on your vehicle to protect you against the risks associated with owning a van. It can be a complicated business working out what you are legally required to obtain, and what van insurance cover you are advised to hold, so here is a simple summary to help you out.
If you use a van for business use, you must have van insurance. It’s that simple. It doesn’t matter whether the van in question is owned by you, or is a van supplied by the company you work for. If it is your own van, and you use it for business and personal use, this must be stated on your insurance certificate, and will mean your policy is a ‘Class One’ policy.
You will need to extend your policy to ‘Class Two’ cover if you require the van you own to be driven by other drivers on a business or commercial basis. Last but not least, ‘Class Three’ cover is legally required if the van used for commercial travelling. Each of the three levels of cover should provide you with a courtesy van whilst yours is being repaired to replaced, and offer third party cover for a trailer.
Other types of insurance to consider are Employers’ Liability insurance and Goods in Transit insurance. The first is designed to cover any compensation you may be required to pay out if your staff are injured or become ill at work. If you employ anyone, whether that be full-time, contract, part-time, casual, it is mandatory to hold this cover. Secondly, Goods in Transit insurance protects you against any damage, theft or loss of goods and materials being transported in your van. The policy usually covers you for business journeys and deliveries.
There are many policies available, each covering different aspects of the courier business, therefore if you require van insurance, it is highly likely that you are obligated to obtain other types of cover too. If you are ever in doubt about the cover you are legally required to hold, contact a reputable insurance broker to discuss your requirements,