Liability, Physical Damage and More
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CARGO VAN INSURANCE
A CV, or Cargo Van, is used in a number of different types commercial enterprises. Cargo Vans are similar to large passenger vans, but they generally do not have windows or glass along the side. Instead the body is made of solid metal so that different types of cargo can be easily and efficiently carries.
Cargo vans are often found in carpet cleaning businesses, for florist or cake decorating deliveries, as mechanic repair vehicles and in small courier businesses. When you use a cargo van in your own business, you must be sure you have it fully protected with the right types of auto insurance coverage. Without adequate coverage, your business can suffer from severe financial hardships that arise due to auto accidents or other incidents that cause damage. Here are the most important types of commercial auto insurance you should carry on your company’s cargo van:
Liability Insurance – Liability insurance pays other people when your van causes or is at fault for an accident. Liability insurance is required coverage by law and the minimum amount you can carry varies from state to state. Liability insurance consists primarily of two important coverages:
- Bodily Injury - Bodily injury coverage pays for physical injuries that are inflicted on people due to an auto accident. If your cargo van is at fault for the accident and other people suffer harm in the accident, bodily injury will pay the associated expenses. If people need to go to the hospital in an ambulance for example, the cost of transport is covered. Bodily injury also pays for the emergency care expenses, doctor’s visits for follow up care, rehabilitation costs, funeral expenses and more.
- Property Damage – The property damage portion of your liability insurance policy pays to fix property that was harmed as a result of the accident. Property damage coverage pays to fix other vehicles that were damaged in the accident, as well as other stationary property such as buildings, mailboxes or signs.
Your commercial liability insurance policy can be structured as a split claim policy or as a single claim limit policy. Single claim limits provide a maximum amount of coverage per accident. Split claim policies provide specific maximum levels of coverage for three areas: Per person, total bodily injury, and total property damages.
If for example, your split claim policy is structured at $25,000/$75,000/$50,000 then that defines the maximum amounts the policy will pay. It will pay a maximum of $25,000 per person for bodily injuries but no more than $50,000 total for all bodily injuries combined. It will also pay no more than $50,000 total for property damages. A single claim policy of $100,000 pays a maximum total of $100,000 per accident regardless of how much of the claim is for bodily injuries or how much is for property damages.
You must select a split claim or single claim policy when you set up your commercial auto insurance policy. You must also choose a deductible at that time, which is the amount you will pay out of pocket when making an insurance claim.
Medical Payments – If the driver of your cargo van is injured in an accident, their medical bills and expenses can be paid with medical payments coverage. This coverage protects all passengers in the vehicle as well, and it pays out benefits regardless of who was at fault for the accident. Medical payments coverage is not available everywhere, so contact one of our licensed representatives to see if it is available for your company’s policy.
Physical Damage Insurance – Physical damages insurance protects your cargo van itself. This coverage can pay for repairs or replacements that are needed due to a number of unexpected hazards, accidents and events. Physical damages insurance is important for companies that least their cargo vans because it provides the highest level of protection you can get. For this reason it is also quite important for small businesses that have an outstanding auto loan or lien on their van.
- Comprehensive Physical Damage Protection – Comprehensive damage protection helps protect you from losses that are caused by unexpected events. It does not apply to roll-over accidents or collision incidents. Instead it pays for losses caused by theft, damages caused by vandalism, and damages caused by natural disasters among other things. If an electrical pole falls onto your cargo van in a lightning storm for example, comprehensive damage protection can pay for the cost of repairs.
- Collision Damage Protection – This insurance option pays for damages that are caused when your van collides with another object, or when it is damaged due to overturning.
- Specified Peril (CAC) – Specified peril insurance coverage protects you from events that are specified in your policy. This coverage is limited in scope and does not cover collision or roll-over accidents. This insurance is also known as Fire and Theft with Combined Additional Coverage, or CAC.
Uninsured or Underinsured Motorist - If another driver causes an accident, their auto insurance is supposed to pay for the damages to your driver, passengers, and the cargo van. If that vehicle is not covered with basic insurance however, your company is left to pay your own repair costs. Drivers that do carry insurance do not always carry enough however, and that can leave you paying some of the bills as well. An uninsured or underinsured motorist policy helps protect your company from these risks. When the other driver is at fault for the accident but does not have the means to pay for damages, your policy will do so instead. Uninsured or underinsured motorist insurance provides similar protection as your liability policy does.
- Bodily Injury - As noted Above
- Property Damage - As noted above
- Collision Deductible Waiver (CDW) - Normally when you make a claim against your auto insurance policy you must pay a specific amount out of your own pocket. This amount is known as your deductible. If you are not at fault for an accident however, and you carry uninsured/underinsured motorist bodily injury, you can get a collision deductible waiver so that you do not have to pay anything.
Other Important Commercial Auto Insurance for CARGO VAN:
- Rental – When your van is out of commission due to being repaired after an auto accident, rental replacement insurance can help you keep your business operating smoothly by covering the cost of the temporary rental van.
- Towing – When your van is disabled on the side of the road and you are no longer able to drive the vehicle due to mulfanction or an accident, your towing coverage will cover expenses.
- Cargo - The cargo that you haul inside your company van may be quite valuable. Carpet cleaning companies carry expensive cleaning machinery for example, and courier services may have valuable client documents on board. Cargo insurance helps protect you from the financial stress that can arise if your cargo is damaged or destroyed.
- Accessories (Ex: mileage meters, navigation units, radios) - Depending on the type of business you own, your cargo vans may be equipped with extra tools and equipment. These accessories might be installed inside or mounted onto the exterior. It may have dispatch radio on the inside for example, and a special antenna on the outside. GPS navigational devices, mileage meters and other specialty equipment can be protected by adding accessories insurance coverage to your commercial auto policy.