Why Your Small Business Needs Commercial Vehicle Insurance

By smei

Posted 15/12/21

Why Your Small Business Needs Commercial Vehicle Insurance

If you use a vehicle to carry out your day-to-day commercial activities, imagine the impact on your business if it was unexpectedly taken off the road.

A 2019 study of van usage by the Society of Motor Manufacturers and Traders (SMMT) found that 3.4 million British workers could not do their jobs without one.1 As a small business owner, whether you use a car, a van or run a small fleet of vans, arranging the right insurance for your vehicles is something you can’t afford to overlook.

In a survey carried out by the Department for Transport, the primary usage which accounted for the most significant proportion of van mileage was ‘carrying equipment, tools and materials’ (61%), followed by ‘delivery/collection of goods’ (24%).2 From fire, theft and third-party damage to misfuelling and lost keys ‒ protecting against these risks will prevent unnecessary disruption to your business.

What Does Commercial Van Insurance Cover?

Typically, small business van insurance covers:

  • The loss or damage of your vehicle resulting from theft, fire or vandalism.
  • In the event of a motoring accident – accidental damage to your vehicle as well as the vehicles and possessions of any third parties.
  • Legal fees should you make a claim or face a claim made against you.
  • Personal accidents.
  • Medical expenses for injuries to yourself, your passengers and third parties.

You can also choose to add optional extras to your policy, such as:

  • Windscreen cover.
  • Misfuelling cover.
  • Lost keys.
  • Trailer cover.
  • Breakdown cover.
  • Courtesy vans.

What are the Types of Small Business Vehicle Cover?

Small business vehicle insurance protects your work vans and cars. It can also cover personal or professional possessions – such as tools – travelling to different workplaces and transporting goods and materials. There are different types of small business vehicle insurance available:

Transporting Goods Cover

If you use your van for general commuting or to transport goods relating to your business – maybe you’re a self-employed tradesman carrying your tools or a dog minder transporting your four-legged customers. In that case, you will need to ensure this cover is included in your policy.

Using your Vehicle to Deliver Paid-for Goods Cover

Suppose you’re a baker – transporting your bakes to multiple destinations. In that case, you will need to insure your car or van with a specific insurance policy to protect the goods you’re delivering. Typical car insurance will not cover you for using your vehicle to carry out these deliveries.

Long-distance Deliveries Cover

If your business requires you to drive long distances to make a single delivery of products belonging to another company, you’ll need haulage cover for your van. Make sure you check your policy details, as the goods themselves may not be protected.

Commercial Fleet Insurance

Small business fleet insurance cover is a single policy that combines all your vehicles. This means you have one renewal date, making life much simpler than having to manage several separate policies. When you insure or renew your small business fleet via a broker, they can help you find the right cover at the right price. So your small business vehicle insurance will be one less thing to worry about.



  1. allstarcard.co.uk/the-uk-van-sector-in-2020-an-insight
  2. assets.publishing.service.gov.uk/van-statistics-2019-to-2020.pdf
Posted 15/12/21

Author: smei

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