If you own a van and are using it either for personal or commercial purposes, it is important to have a van insurance cover.

For those using vans for their business, it is even more necessary as their business heavily depends on vehicles for movement of goods and products and van insurance lends them security and safety for their van as well as goods.

Many insurance companies also offer insurance cover for contents of van in case of theft or damage due to fire.

The type of van insurance you would like to purchase will depend on size of van, its make, model and value among other things.

It will also be based on your requirements on range of damages and losses you would like to include in the policy. Insurance companies offer insurance cover for transit vans, escort vans and courier vans.

For vans used for commercial purposes, insurance companies have three commercial insurance products viz. Fully Comprehensive insurance, Third Party commercial van insurance and Third Party fire and theft insurance.

Fully comprehensive insurance cover is quite expensive compared to other two commercial van insurances. It covers numerous risks including liability for death and any injury to occupants of van, losses caused by fire, vandalism, burglary and theft.

Many insurance companies also provide liability for tools and other contents of van.

Certain van insurance policies provide replacement vans so that the owner’s business operations do not suffer while a damaged van is being repaired.

Fully comprehensive insurance covers not only damages to vehicle, but also legal and medical expenses up to a certain limit. This cover is most useful for transit since it covers van, passengers and contents.

Second type of van insurance is the Third Party theft and fire insurance which covers damages and losses due to fire, theft, accidents, vandalism and explosion.

It also compensates for damages caused to third party by your van. Though third party is given complete coverage under this policy, coverage for your van and driver is subject to cause of the damage.

You will not get compensation if damage is caused by your van due to your driver’s mistake.

Third party van insurance covers only damages to third party. It is least expensive of all three types. It is most suitable for those who don’t want to spend more on van insurance premiums. This insurance helps you fulfil minimum legal requirements.

Besides these 3 insurance covers, options like increased third party theft, increased personal damage and foreign use, are also offered by the insurance companies. These optional covers can be used with basic insurance cover by paying additional costs.

Remember that van insurance is compulsory by law; not having a valid van insurance policy is a criminal offense. You will be required to pay hefty fine, receive penalty points and made to pay for damages to third party in the case of an accident.

Protection of your van and contents should not be considered as wastage of money. Those serious about their business value all their assets and take necessary steps to safeguard them from risks.