Cargo vans resemble huge commuter vans, although they usually lack windows and glass on the sides. Rather, their body is made of pure steel, allowing various kinds of freight to be carried quickly and efficiently.
Various businesses such as Carpet cleaning enterprises, mechanical repair services, as well as other related businesses all use cargo vans. However, whenever you use a cargo van for your enterprise, cover it with the appropriate insurance.
This article explores cargo van insurance in depth, the cost, and the best companies offering the policy.
Commercial Insurance for Cargo Van
The commercial insurance for cargo vans is business auto insurance. Business auto or commercial auto insurance consists of coverages that take care of casualties of the accident your cargo van caused and protect the cargo van from damage.
Types of Commercial Auto Insurance Offered Under Cargo Van Insurance
Auto Liability Insurance
Auto liability insurance for cargo vans takes care of costs when your van causes or contributes to a mishap. It is a mandatory cover by legislation, and the minimum coverage you need to have differs by jurisdiction. A typical auto liability insurance for cargo van offers:
- Bodily injury liability coverage – covers people’s physical injuries because of an auto crash. Whenever your cargo van causes an incident and other individuals are injured, bodily injury insurance will cover the costs.
- Property damage liability coverage – It pays to repair the property damaged after the accident. This also covers any automobiles or immovable objects.
Physical Damage Insurance
This liability policy included in commercial auto insurance for cargo van takes care of repairs and replacements caused by unforeseeable dangers, risks, or occurrences.
Physical damage insurance is essential for businesses that lease cargo vans since it offers the most comprehensive form of protection available.
- Comprehensive damage protection –it covers damage from collisions, fire, theft, vandalism, and other events excluded in specified perils and collision damage protection
Uninsured or Underinsured Motorist
When another motorist causes a collision, their insurance coverage caters to the harm incurred by your driver, occupants, and cargo van.
Cargo Insurance for Sprinter Van
In case of accidents and the items inside the cargo van got damaged, none of policy above can provide coverage to recoup losses. And so, don’t forget to get cargo insurance for cargo van or sprinter van.
In brief, cargo insurance will provide money equal to the total value of cargo that got damaged because of a vehicular accident, fire, theft, vandalism, and other named perils. This policy is included in cargo van insurance or offered as a stand-alone policy.
Cargo Van Insurance Requirements
All cargo vans used for business must be covered with commercial auto liability insurance. The amount of coverage depends on where your cargo van business is located.
Most cargo van owner-operators need to get $100,000 cargo insurance to satisfy licensing requirements and customer contracts.
What if you’re renting a trailer so that your cargo van can carry more load? In this case, you also need to get trailer interchange insurance offering $100,000 bodily injury and property damage liability coverage.
Of course, if you have an assistant or a helper, workers compensation insurance is required. Not getting workers compensation insurance is punishable by law. Authorities will impose fines or might even imprison you.
Finally, if you deliver or ship cargo regulated by the FMCSA, expect to get a motor carrier policy or MCS-90 endorsement
Other Cargo Van Insurance You Might Need
Aside from those we mentioned above, you might need to get other insurance policies depending on the type of cargo van business you’re running. For instance;
Commercial Property Insurance
Commercial property insurance ensures that you don’t experience significant losses if something happens to the commercial space of your cargo van business.
Events such as fire, extreme weather, theft, and vandalism might destroy or damage it. The purpose of commercial property insurance is to give you money for building repair or reconstruction.
General Liability Insurance
Someone might experience an accident while in the premises of your cargo van business.
It’s also possible for customers to file a claim and accuse your business of causing personal injuries or property damage with its services. To protect yourself against such exposures, get general liability insurance.
General liability insurance is a common inclusion in cargo van rental business insurance. This policy covers costs if someone files a personal injury claim or property damage claim. Particularly, you can use general liability insurance to compensate aggrieved parties and pay for defense costs.
Just like commercial property insurance, general liability insurance comes with optional coverages. Such optional coverages are:
- Advertising injury coverage
- Rented premises liability coverage
Advertising injury coverage will take care of all expenses if your cargo van business faces a libel, slander, or copyright infringement claim.
Get all the best quotes from leading providers in a click of a button!
Workers Compensation Insurance
Running a cargo van business means that you’re employing drivers, mechanics, finance professionals, and others. Whether part time or full-time, know that you’re responsible if an employee becomes injured or sick because of work.
To avoid using personal funds in helping the employee recover, get workers compensation insurance. Workers compensation insurance will cover the hospitalization, treatment, and rehabilitation of the employee.
Workers compensation insurance also assures an injured employee will get reimbursements for lost wages.The worker receives two-thirds of his or her average weekly wage.
Cargo Van Insurance Cost
The typical annual cost of commercial insurance for cargo van is $3,300 a year or $275 a month for a $1 million general liability coverage.
But some factors such as where you live can influence your commercial cargo van insurance costs, since some jurisdictions need more protection than others.
Below are the estimates of average cargo van insurance cost per month, cost in few jurisdictions:
| State | Cargo Van Insurance Rates per Month | Cargo Van Insurance Rates per Year |
| California | $574 | $6,888 |
| Florida | $213.75 | $2,565 |
| Maine | $486 | $5,832 |
| Michigan | $440.16 | $5,282 |
| Minnesota | $189.25 | $2,271 |
| Montana | $210.42 | $2,525 |
| Oregon | $183.75 | $2,205 |
| Texas | $216.17 | $2,594 |
It is also worth noting that even in the same jurisdiction, rates may vary significantly . Your company’s geographical coverage
- Employees’ driving records
- Complaints
- Background
- average mileage each year.
- Insurance plans and limits
Help others make better decisions
Best Cargo Van Insurance Companies
CoverWallet
CoverWallet is an insurance broker that allows you to compare the quotes of its partners. Even though it doesn’t underwrite policies, With CoverWallet, you’ll enjoy an online certificate of insurance, and also efficient policy management.
Average cost: $169 per month
Our rating: 10/10
Pros
- Allows you to compare quotes and find the best cargo van insurance
- Certificate of insurance available online
- Online and easy policy management
Cons
- Not an insurance company but a broker selling the quotes of its partners
Hiscox Insurance
Hiscox doesn’t have tailored cargo van insurance. However, it offers commercial auto insurance for businesses in different industries. Hiscox can still cover you.
Hiscox commercial auto insurance provides coverage to hired, rented, or owned cargo vans. Policies included are underinsured/uninsured motorist, auto liability, physical damage coverage, cargo insurance, and more.
Average cost: $173 per month
Our rating: 9/10
Pros
- Offers generous policy limits
Cons
- Doesn’t have an insurance product tailored for cargo vans
Get all the best quotes from leading providers in a click of a button!
Geico
You can get Geico’s coverage regardless of what your enterprise is or what type of vehicles you plan to insure, including cargo vans.
Not only can Geico protect any size of fleets, along with all models of vehicles, trucks, or vans.H
However, it could also protect vehicles used for specialist services such as hauling, landscaping, and building. Expect the same high-quality customer care Geico is known for, particularly when you are in a pinch.
Average cost: $230 per month
Our rating: 8/10
Pros
- Offers discounts options
Cons
- Doesn’t allow you to cancel cargo van insurance easily
