the right insurance policy
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If your company owns a commercial or business passenger van, you are probably in the business of transporting people or merchandise to multiple locations frequently. Passenger vans are excellent business assets to have if you operate a hotel related business for example, because the vehicle allows you to transport larger families or groups of guests who may be staying at your resort for a seminar. Business vans also make excellent taxicabs for similar reasons; your company can offer transportation to larger groups all at once.
Regardless of whether you use your van to transport merchandise and supplies, or you use it to transport people, the type of commercial van insurance you carry is an extremely important area that you cannot afford to overlook. With the right business van insurance you can protect your company from suffering the severe financial losses that can arise when the van is involved in an auto accident. Here are the primary types of passenger van insurance you’ll need to carry for maximum protection:
Liability Insurance – Liability insurance is required coverage by law. By carrying this type of commercial van insurance, you are capable of handling the bills that arise when your van causes an auto accident. If your van is at fault for the accident, your liability insurance pays for the expenses that arise related to medical bills and property damages.
- Bodily Injury - This portion of your liability insurance pays for the cost of emergency treatment and ongoing medical care when people are injured in an accident that your business van caused. It specifically applies to physical injuries that are incurred by the driver or passengers of the other vehicles involved in the accident. Examples of things this coverage pays for includes emergency medical care, hospital treatment and stays, physical therapy and rehabilitation, lost wages from time off work, and pain and suffering.
- Property Damage – When your commercial van causes an auto accident, it can damage or destroy other vehicles and tangible property. The property damages portion of your liability insurance pays for the costs of repairing those vehicles, or replacing them if necessary.
Medical Payments – Medical payments is an important type of insurance to carry on a commercial passenger van. This coverage pays for the emergency medical care and related ongoing medical bills that arise for the van driver and any passengers who were in the vehicle when the auto accident occurred. Medical payments insurance pays for the medical expenses regardless of who was at fault for the accident, so this ensures that everyone riding in the vehicle is protected at all times. Medical payments coverage is not available in all areas however. Contact one of our licensed representatives and we’ll be happy to help you determine its availability for your business van insurance policy.
Physical Damage Insurance – Physical damages insurance is specifically designed to protect you from the financial hardships that you will encounter if your business van is damaged or destroyed. It provides coverage for the van itself, and can be the highest level of protection available. This insurance is particularly useful for companies who rent or lease their commercial vans, and those who are still paying off the finance loan for their passenger vans.
- Comprehensive Physical Damage Protection – Comprehensive protection provides your passenger van with insurance against almost any hazard or peril that could arise that is not collision or roll-over specific. If your van is damaged by falling debris in a wind storm for example, comprehensive damages protection will pay for the cost of the repairs. It protects you from losses caused by theft of your van, vandalism, and many other similar hazards.
- Collision Protection – Collision protection provides your business van with insurance against losses caused from colliding with other objects, or from overturning. If your van overturns on a slick highway for example, your collision damages protection will pay for the cost of the repairs. If the van driver pulls to close to a fire hydrant and strikes it, this coverage will pay for those damages as well.
- Specified Peril (CAC) – Fire and Theft with Combined Additional Coverages (CAC) is also known as Specified Peril coverage. This is commercial van insurance that protects you from non-collision and non-roll over events, but it limits the coverage to only those risks and perils that are specified in your business auto insurance policy.
Uninsured or Underinsured Motorist - Uninsured or underinsured motorist coverage is designed to protect you from losses caused by other drivers. When another driver causes an auto accident with your business van, their liability insurance is supposed to pay for bodily injuries and property damages. If the driver does not carry liability however, then he is uninsured and there is no recourse for damage payments. If the driver does carry insurance however, and it is not enough to pay for the full extent of the damages and injuries she caused, then she is considered underinsured. In either situation, your company would have to pay part or all of the repair bills for your van if you do not carry uninsured or underinsured motorist protection.
- Bodily Injury - Coverage as outlined for Liability, with benefits to your van driver and passengers.
- Property Damage - Coverage as outlined for Liability, with benefits paying for your van’s damages.
- Collision Deductible Waiver (CDW) - When you carry an uninsured or underinsured motorist bodily injury policy, you can qualify for a collision deductible waiver (CDW). A CDW makes it so that you do not have to pay your standard insurance deductible when you must make a claim against your uninsured or underinsured policy.
Other Important Commercial Auto Insurance for VAN includes:
- Rental – Rental insurance pays for the cost of renting a replacement business van when yours is out for repairs due to an auto accident.
- Towing – If your commercial van is damaged severely in an accident, towing insurance pays for the cost of towing the van away from the accident scene.
- Accessories (Ex: mileage meters, navigation units, radios) - Your business van may have expensive accessories installed or mounted to it for business purposes. You may have GPS navigational units for example, to ensure your drivers are able to locate and deliver passengers efficiently. Accessories coverage pays for the cost of repairing or replacing devices such as radios, mileage meters and GPS devices when they’re damaged in an auto accident.