The Difference between Personal and Commercial Van Insurance

Are you a florist, gardener, or landscaper? Do you run a laundry delivery service? Since the van makes movement easier, especially because such businesses require space for the tools and items to be delivered, business owners need to insure them. Unfortunately, for small business owners, the line between a van for business and personal use is usually blurred. If anything, some entrepreneurs opt to use the business vehicle as a personal vehicle as well in a bid to cut costs. However, personal vehicle insurance policies do not cover business use, so a policy that covers multipurpose vehicles is essential. 

Kevin Pratt, in the following article, discusses various types of commercial van insurance, including the benefits of comprehensive coverage. 

Choosing between Comprehensive and Third-Party Van Insurance 

“You might be a plumber or a plasterer, a florist or a fishmonger, but your van is no doubt vital to your business. You therefore need cover in case something goes wrong. If your van was stolen, for example, your business could grind to a halt. Or what if the vehicle was involved in an accident and off the road?

Commercial van insurance is essential to ensure the smooth running of your business. But in these difficult economic times, no one wants to pay over the odds for van insurance – and no one wants to buy inappropriate cover.” Read more here

In Singapore, when seeking coverage for your business van, you will have several policies from which to choose. The third-party policy is usually the cheapest and is the bare minimum insurance required for any vehicle. This policy only covers the injury of another person or their property. Third-party fire and theft policy mean the insurer will compensate you if the van is damaged by fire or if it is stolen. Comprehensive van insurance is the maximum cover, and it covers all kinds of damages. The comprehensive van policy is the best option for all businesses that use the van to run the business. 

In the following article, Thomas White explores van insurance, especially for those who need coverage for business and personal use. 

Things to Consider When Commercial Van Insurance

“Van insurance covers you against all kinds of risks relating to owning and driving a van, in the same way that car insurance protects car drivers and users. Many people mistakenly think that their car insurance policy will cover their van, which is rarely the case. Van insurance can cover you if you end up in an accident, and can also help you repair or replace your vehicle quickly and efficiently to keep your business on the road in the meantime.”  Read more here

When requesting coverage for your business van, you need to discuss every aspect of its usage with the potential insurer. For instance, taking a policy that only covers the van when being used for business means you may not get compensation should you be involved in an accident when running personal errands. If you use the van to carry business tools and equipment, you need to ensure the policy also covers the contents in the van. If you deliver goods and rewards to customers, the policy also needs to cater for such goods. You may also need haulage cover if your drivers cover a long distance to deliver goods or services. 

The following article by gobear discusses business insurance and the importance of being specific when taking out a policy to protect business property. 

Why You Should Consider Commercial Van Insurance before Buying a Van

“All geared up and ready to start your first trip as a Grab driver or to earn some spare cash? Or are you teaming up with some buddies to do some Lalamove gigs? The sheer excitement of being your own boss and deciding how you want to earn your keep is understandable.

But before all that sinks in, have a think about protecting yourself from unexpected situations. On the legal front, you need to have suitable car insurance, which can be either third-party or comprehensive, regardless if you’re driving for yourself, or as a Grab driver, or just picking up some moving jobs on the side.” Read more here

When coming up with a business plan, even as you consider everything you will need, including a van, you need to consider the challenges you will face when seeking insurance if the van you buy has unseen obstacles. For example, when buying a used van, you may need to consider the age of the van. Many insurers have age limits beyond which they cannot offer comprehensive van insurance because the vehicle carries a greater risk. You should also consider the model and even the age of the drivers you hire. 

If you are looking for van insurance in Singapore, visit  https://allegiance.com.sg/commercial-insurance/commercial-vehicle-insurance/ for the best policies!

It may seem an overstretch for an insurance company to dictate certain aspects of your business, such as the age of the van and drivers, but these companies are also taking a risk insuring your van. They have a slot to lose should they cover a vehicle that will be breaking down constantly, or one that is more likely to be involved in an accident because of an inexperienced driver or the van may be too old. Insurance companies also prefer to draw the line between personal and commercial use of business vans. This is why there are policies dedicated to commercial vans that are sometimes used for personal use.