Cargo Van Insurance
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.