Everything your business needs to know about commercial vehicle insurance

Every business must protect itself against the risks it faces, both inside and outside of the office. It’s handy to remember that when an employee is on the road on your behalf, their vehicle is your workplace and, as a result, you need to be aware of the insurance implications that this has. 

‘Business use’ insurance

Simply put, if your employees are engaged in a form of business that requires travel then they need to have the right cover. Typically, standard insurance policies should cover commuting to and from a usual workplace but anything beyond that – regular travelling to different offices or visiting customers/clients, for example – requires business cover. For vans the definition is even more strict and even commuting to work, as GoCompare states, needs a business insurance policy. 

Businesses need to make sure their employees are aware of this and neither party should be tempted to try to ‘get around it’. Having an incorrect policy puts it at risk of being invalidated and leaving you at risk of serious problems in light of an accident. 

Many businesses require proof of this sort of policy before letting a driver enter into a company vehicle and some reimburse employees for the extra expense they have incurred.

Working circumstances matter

As Confused.com points out, the price of a policy will dictate on the circumstances of the individual business user. If they travel all the time for their job, travel alone or share the burden with others it will affect the price paid, reflecting the ‘risk’ attached to such professions and levels of driving.

Fleet insurance

Many companies will operate in a sector that requires them to have a fleet of vehicles to deliver their goods and services to customers and clients, from cars for sales reps through to the sort of vans available at www.leasevan.co.uk. 

In that case it is possible for companies to have one ‘fleet insurance’ policy covering all of the vehicles that they use for business. Such policies can normally provide cover for those needing to drive in the EU and many companies offer supplementary policies to cover the goods carried over long distances.

Specialist cover

As well as cover for the whole fleet, companies can also obtain specialist cover if their work is specifically targeted towards driving or vehicles. Motor trade insurance pretty much speaks for itself, while hire and reward insurance is targeted at those in the transport industry – or drivers who carry people or their property. 

Many insurers will also offer combined policies to include some of the other policies business’ need – such as public liability insurance – in the same way domestic users bolt together their gas and electric bills.

Shop around

Lastly, it’s important not to lose track of the fact that businesses should shop around to get the best deals they can for vehicle insurance. Business use does add cost to a policy but it’s essential for drivers using their vehicles commercially and needn’t cost the earth. Most insurance providers offer the types of business cover; these policies are not the preserve of expensive specialist outlets.