Many businesses rely on vehicles to carry out their primary functions. Just like any other vehicle, by law they need to have suitable insurance to operate on the road. Not only does this provide protection for other motorists out and about, but it can also cover you, your vehicle and any tools, equipment or cargo to be carried.
Small independent businesses may only use a single van to conduct their operations. Whether you’re a tradesman taking multiple tools with you or a florist delivering beautiful bouquets to your customers, your business could be heavily affected if something happens to your commercial van. With the right insurance in place, you can continue to operate comfortably in the knowledge that your business won’t grind to a halt if there’s an accident.
For larger businesses utilising multiple vehicles in a fleet – from vans to HGVs and lorries – a problem with any one of them can have an impact on your supply chain and ongoing processes. Insuring your commercial vehicles helps to soften the financial blow you might otherwise face when repairing a damaged lorry or replacing lost or spoiled cargo.
Commercial vehicles are generally used to transport items for various different reasons. If your business operates long-haul shipments or multiple delivery drop-offs, you will need to declare this when looking for a suitable insurance policy to make sure you get the right cover.
Carriage of goods for hire or reward offers ideal cover for any type of delivery travelling to multiple destinations, which is best suited to retail delivery making drop-offs at customers’ homes. Haulage policies will usually apply to vehicles transporting cargo to a single final destination, such as a distributor delivering new stock to a warehouse.
It may be the case that you use your commercial vehicle only to carry your own tools or equipment. For this, a policy that focuses on Carriage of own goods can provide appropriate cover for trade equipment in transit. This is also useful for private drivers using a commercial vehicle to travel to multiple places of work for meetings, etc.
There are three main levels of cover for any vehicle, whether you use them privately or for commercial purposes. These types can allow either yourself or any other motorists around you to make a claim that will be covered by your insurance policy.
Third party only cover is the minimum legal requirement for any vehicle operating on the road. If you or a driver in your employment becomes involved in an accident on the road that causes damage or injury to other people or their property, any claims made by the third party can be covered by your insurance. However, you won’t have cover for damages to your own van, truck or lorry.
Third party fire & theft cover provides all the relevant cover for third party claims, but can also offer a lifeline to you under certain circumstances. If your commercial vehicle ends up being stolen or is significantly damaged by accidental fire, you should also be able to make a claim for any financial losses that could impact you or your operations.
Comprehensive cover encompasses all reasons for claims made either by you or a third party. This means that if yours or somebody else’s vehicle becomes damaged, your insurer should be able to pay out whether or not you were the one at fault. Comprehensive policies also include fire and theft cover for your vehicle as above.
It’s often assumed that the lower the level of cover you choose, the lower your premium will be. This is not always necessarily the case, however, so it’s always worth comparing quotes for different cover types, especially with a commercial vehicle that could be considered a higher risk.
As vital assets to your business and your livelihood, it’s important to make sure you have the right insurance for your commercial vehicles. Contact Arkwright today to tap into our specialist knowledge of vehicle insurance and business insurance – as well as our connections with the country’s leading providers – and find the best possible quote.
Speak to one of our team of brokers on 01204 392 525 and let’s discuss your vehicles, your situation and your insurance needs, so we can build up a picture of your ideal policy and find you a suitable policy with a competitive quote. Not able to call us straight away? Simply click the “Get a quote” button and send us a few quick details and we’ll take it from there.