Cargo Van Insurance: Protecting Your Business

As a business owner, you know that protecting your assets is crucial to the success of your company. Whether you run a small delivery service or a large transportation company, you need to make sure that your cargo vans and drivers are covered should the unexpected occur. This is where cargo van insurance comes in. In this article, we’ll explore what cargo van insurance is, what it covers, and how to choose the right policy for your business.

What is Cargo Van Insurance?

Cargo van insurance is a type of commercial auto insurance that provides coverage for vehicles used for business purposes. This includes vans used for transporting goods, tools, or equipment. Cargo van insurance policies typically cover liability, collision, and comprehensive coverage. Liability insurance covers damages and injuries caused by your van to other people or property. Collision coverage pays for damages to your van in the event of an accident. Comprehensive coverage protects your van from other types of damage, such as theft, vandalism, or natural disasters.

When you purchase cargo van insurance, you’ll need to provide information about your company, the number of vans you own, and the drivers who will be using them. Insurance companies will also ask about the types of goods you transport and the mileage your vans typically cover. This information helps them determine your risk level and the cost of your policy.

What Does Cargo Van Insurance Cover?

Cargo van insurance covers a range of risks and damages related to your business and your vehicles. Some of the most common coverages included in cargo van insurance policies are:

Covers damages and injuries caused to others by your van
Pays for damages to your van in the event of an accident
Covers damages to your van from theft, vandalism, or natural disasters
Cargo Coverage
Covers the value of the goods or equipment you transport in your van
Uninsured/Underinsured Motorist
Covers damages and injuries caused by uninsured or underinsured motorists
Medical Payments
Covers medical expenses for you and your passengers in the event of an accident
Rental Reimbursement
Pays for a rental van while your van is being repaired after an accident
Towing and Roadside Assistance
Provides help if your van breaks down or needs to be towed

How to Choose the Right Cargo Van Insurance Policy

When choosing a cargo van insurance policy, it’s important to consider a number of factors. Here are some of the key things to keep in mind:

1. Your Business Needs

Consider the types of goods or equipment you transport, the distance you travel, and the number of drivers you have. This will help you determine the level of coverage you need.

2. Your Budget

Cargo van insurance can be expensive, so it’s important to shop around and compare rates. Make sure to get quotes from at least three different companies to find the best value for your money.

3. The Insurance Company’s Reputation

Research the insurance company’s financial stability and customer reviews to ensure that they are a reliable and trustworthy provider.

4. The Policy’s Deductible and Limits

Make sure to understand the policy’s deductible (the amount you pay out of pocket before insurance coverage kicks in) and limits (the maximum amount the insurance company will pay out for damages). Choosing a higher deductible may lower your monthly premiums, but it will also mean higher out-of-pocket costs if an accident occurs.

Frequently Asked Questions

What is the difference between personal and commercial auto insurance?

Personal auto insurance policies only cover vehicles used for personal use, such as commuting to work or running errands. Commercial auto insurance is specifically designed for vehicles used for business purposes, such as cargo vans used for transporting goods.

How much does cargo van insurance cost?

The cost of cargo van insurance varies depending on a number of factors, including your business’s risk level, the number of vans you own, and the driving records of your drivers. On average, cargo van insurance can cost anywhere from $1,000 to $5,000 per year.

What types of goods or equipment are covered by cargo van insurance?

Most cargo van insurance policies cover a wide range of goods and equipment, including tools, electronics, and supplies. However, there may be limitations or exclusions depending on the specific policy you choose. Make sure to review your policy carefully to ensure that your cargo is fully covered.

Do I need cargo van insurance if I only transport goods occasionally?

Yes, if you use your van for any business-related purposes, you need to have cargo van insurance. Even if you only transport goods occasionally, accidents can still happen and you need to be covered to protect your business and assets.

How can I lower the cost of my cargo van insurance?

There are a number of ways to lower your cargo van insurance premiums, including:

  • Choosing a higher deductible
  • Installing safety features such as alarms and tracking devices
  • Checking for discounts for good driving records or multiple vehicles
  • Bundling your cargo van insurance with other business insurance policies


Cargo van insurance is an essential protection for any business that uses vans for transporting goods or equipment. By understanding what cargo van insurance covers, how to choose the right policy, and what factors to consider when shopping around, you can ensure that your business is fully protected and prepared for the unexpected.