Commercial & Cargo Van Insurance

Commercial vans and cargo vans are excellent resources for many types of businesses, including restaurants, catering companies, florists, rental companies, restaurant supply, and parcel delivery companies. Whether you occasionally drive one small delivery van or operate an entire fleet of commercial vans, you'll need to make sure you've got the right protection. 

Using commercial and cargo vans for business purposes automatically requires you to get additional coverage beyond what's included in a personal auto insurance policy. If you use vans for your business, you'll need to get a separate insurance policy entirely.

Fortunately, an independent insurance agent can help you find the right kind of commercial van insurance. They'll make sure you get set up with exactly the type of coverage your business needs to protect its fleet. The coverage you need will depend on a number of factors, including how you use your company vans and whether your drivers cross state boundaries. But first, here's a breakdown of commercial and cargo van insurance.

What Is Commercial and Cargo Van Insurance?

For companies that use vans, whether delivery vans, cargo vans, etc., for business purposes, a special form of commercial auto insurance coverage is required for the unique risks involved. A personal auto policy won't provide coverage for vans used for business purposes. You might need commercial van insurance if you operate any of the following for a business:

• Box vans: These are heavy-duty box-shaped vans with a dual axle that can carry heavy items such as loaded pallets and beverage crates.
• Cargo vans: These are practical medium-weight delivery vans that can typically carry 3,000 to 4,000 pounds.
• Step vans: Usually used for parcel delivery, these vans are designed for the driver to enter and exit quickly.
• Refrigerated vans: Designed to transport perishables, these vans can carry a wide range of weights depending upon their size.
• Courier vans: These are smaller vans, typically used to deliver small parcels across town or between cities.
• Passenger vans: Manufactured in many sizes, passenger vans transport people from one place to another, often with luggage racks or a special hold area for those heading to or from the airport.

You might also need commercial or cargo van insurance if you own or operate any of the following:

An independent insurance agent can help you find the exact commercial or cargo van insurance you need for your specific business, vehicles, and operations.

What Does Commercial and Cargo Van Insurance Cover? 

The type and amount of commercial or cargo van insurance you need depends on whether you're a business owner, entrepreneur, or contractor, among other factors. The first step is to learn about the laws in your state, as many have specific insurance requirements for commercial vans and trucks. 

Most states mandate the following coverage types regardless of the type of vehicle or driver:

• Bodily injury liability coverage: Pays for claims resulting from third-party bodily injury or death after an accident.
• Property damage liability coverage: Pays to repair or replace another person's property or vehicle that gets damaged in an accident. 

While most states have a minimum required amount of liability coverage, it's a good idea to work with your independent insurance agent to ensure you purchase enough to fully cover yourself in the event of an accident.

Some states also require the following coverage: 

• Medical payments coverage: This coverage pays for medical expenses or lost wages if you or your passengers get injured in an accident.
• Uninsured motorist coverage: Pays for the costs of property damage and bodily injuries if another driver causes an accident but fails to carry adequate coverage of their own to compensate you. 
• Personal injury protection insurance: Pays for medical expenses and lost wages for you and your passengers after an accident.

An independent insurance agent can help you ensure your business meets all state requirements for commercial and cargo van insurance.

Additional Commercial & Cargo Van Insurance Coverage to Consider

Depending on where your business is located, you might be required to buy additional types of coverage. Otherwise, you may just want to strongly consider adding more protection to your company's policy. Here are a few additional commercial and cargo van insurance coverages to look into:

• Collision insurance: Pays for damage to your van from a collision with another object, regardless of fault.  
• Comprehensive insurance: Pays for damage to your van due to a non-collision event such as a flood or theft. 
• Towing and roadside assistance insurance: Pays for the cost of towing and other professional roadside services in the event of a breakdown or another incident on the road.

The amount of compensation you receive in a covered incident is determined by the total damage, the amount of coverage you have, and your deductibles. If you're a business owner, you also might want to consider adding commercial umbrella insurance that provides much higher liability limits than what's included in commercial auto liability insurance. 

Umbrella policies offer liability coverage in increments of $1 million, providing additional protection if you face a lawsuit. An independent insurance agent can help you choose the right types of commercial or cargo van insurance for your needs.

Who Needs Commercial & Cargo Van Insurance?

If you run a business that relies on vans for any professional purpose, including deliveries, you'll need commercial van insurance. You might need commercial or cargo van insurance if any of the following apply to you:

• You own a commercial operation and hire drivers to make deliveries or to transport passengers.
• You run a service-based business, such as a floral shop, bakery, or rental equipment company, and deliver to venues like churches and reception halls.
• You run a home service business, such as painting, plumbing, electrical, or carpet cleaning services, and you transport your equipment to job sites in a van.
• You're a professional courier and use a van to deliver documents and parcels around town.
• You're a commercial van driver who works as an employee or contractor and uses your own van to make deliveries.
• You have a van rental service.
• You have a fleet of vans to deliver passengers to and from the airport.
• You offer van service for churches or care facilities.

Commercial & cargo van insurance is often required for the following occupations:

Commercial van insurance not only provides insurance protection for the driver, passengers, and contents, but it also protects the business owner. You can set liability coverage at a higher limit with a commercial auto policy than with a personal auto policy. With higher limits, you can protect your business financially if an employed driver is responsible for an accident that causes bodily injury or property damage.

Commercial accidents can involve employees, passengers, valuable goods, and even hazardous materials. Your commercial and cargo van insurance needs to cover the expenses of vehicle repair and replacement, lost goods, potential medical expenses if anyone is injured, and legal costs if an injured party files a lawsuit. An independent insurance agent can help you determine if you need commercial or cargo van insurance to help protect your business vehicles and how much coverage is necessary. 

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Do Independent Contractors Need Commercial & Cargo Van Insurance?

A separate commercial van insurance policy may be required for independent contractors who use vans for business purposes like deliveries. Some independent contractors can receive this coverage through the company they're contracted to do work for. 

However, this coverage might only apply when they're specifically hired for a project. Outside of your contract terms, you may need to have your own commercial van insurance policy to protect yourself.

How Much Does Commercial & Cargo Van Insurance Cost?

The cost of commercial van insurance can vary just as much as standard auto insurance. The make and model of the vans you operate, as well as your unique business, its location, operations, and risks, all impact the cost of a commercial van or cargo van insurance policy. 

Other factors, like where you operate the vehicle, as well as your personal driving history and credit score, can impact the cost of commercial van insurance, too. An independent insurance agent can help you find the best rate for a commercial and cargo van insurance policy in your area.

How to Save Money on Commercial & Cargo Van Insurance

There are a number of ways to save money on your business's commercial & cargo van insurance. Here are some easy tips to follow today:

• Hire excellent drivers: If you're an employer, carefully choose who you hire to drive commercial vans for your business. Make sure all drivers have a spotless record without traffic violations and accidents. Your commercial & cargo van insurance costs can be much lower if your drivers have outstanding driving histories.
• Require safety training: Many companies require safety training for their hired drivers to ensure their employees use the best practices on the road. Certificates from safe driving courses may also help you find commercial vehicle insurance discounts.
• Combine policies: You may qualify for multi-policy discounts if you combine your commercial vehicle policies or bundle them with other business insurance coverage under one insurance company. 

An independent insurance agent can help you find commercial & cargo van insurance discounts and suggest other easy ways to save money on your business's premiums.

Compare Commercial & Cargo Van Insurance Quotes with an Independent Insurance Agent

When you're searching for the most affordable, quality commercial & cargo van insurance near you, no one's better qualified to help than an independent insurance agent. These agents can shop and compare multiple commercial & cargo van insurance companies in your area and present you with only the best options. Together, you'll make an informed decision about the policy that offers the greatest blend of coverage and cost.