Commercial Vehicle Insurance

Insurance Boucher and Slack
Creative Commons License photo credit: Steve Snodgrass

Finding the correct policy for your business is a real challenge. Your choice of commercial vehicle insurance is dependent on so many factors, some of which may apply so especially to your company’s operation that it may seem that a bespoke policy is the only true way forward. A commercial vehicle policy tends to target companies that hold multiple vehicles with diverse usage. For example, a company may run delivery vans as well as vehicles for the sales team and executive cars for directors. Companies that specialise in vehicle hire also need very specific insurance policies, as do garages and vehicle forecourt operations.

A business with its own fleet, whether that amounts to a couple of vans or an entire vehicle range, is fully dependent on the smooth running of their commercial vehicle insurance. Compared to private car insurance, such a policy must enable the company to continue trading effectively if one of its vehicles or drivers is off the road. Insurance policies are typically made up of the essential “third party”, “third party, fire and theft” or “comprehensive” alongside a whole list of optional add-ons specific to your company’s requirements. It is therefore essential that you understand your entire business’ needs when selecting an appropriate policy. This is straightforward for a very small business with few employees, but becomes increasingly complicated as the size of business increases.

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For example, if your delivery service operates in mainland Europe you’ll need specific European cover. The breadth of this cover is further informed by how long and how often your vehicles drive overseas. Your sales team may benefit from an “onwards to destination” option so that crucial business meetings aren’t missed in the event of an accident or breakdown. Free replacement vehicle in the event of no-fault accident is an excellent way of keeping your goods moving onwards to delivery, and there’s even the option of compensation should one of your drivers lose their driving license for whatever reason. This compensation is designed to cover the cost a hiring a replacement driver and may be particularly useful for larger or specialist time-critical delivery companies.

Larger companies may find it more cost effective to buy several different insurances for their different vehicle divisions. For smaller companies, typically employing less than 10 staff, a single multifaceted policy may be a cheaper and more effective choice, especially if staff undertake several roles within the company. It’s worth investing in a thorough research of the available options specific to your company’s needs. A policy needs to be affordable whilst at the same time delivering all the necessary cover with as little fuss as possible.