What is cargo van insurance?

Most commercial vehicles need to be insured, but not all vehicles have the same coverage needs. For insuring cargo vans that transport goods, Texas businesses generally should get cargo van insurance.

Cargo van insurance policies are tailor-made for protecting non-passenger vans. Policies often provide protections for a van, business and cargo.

What Texas businesses should purchase commercial van insurance?

State law typically requires auto coverage, so most Texas businesses that own commercial vans need commercial van insurance. For non-passenger vans, that’s typically a cargo van policy.

In addition to state law, van loans and leases can also stipulate certain coverages. Loans frequently require coverages that protect the van itself, so the lender’s financial investment in a financed van is protected.

What kinds of vans do cargo van policies cover?

Cargo van policies cover most kinds of non-passenger commercial vans. Policies are readily available for cargo vans, delivery vans, courier vans, step vans, reefer vans, box vans, utility vans and other models. 

Last-mile delivery companies, local couriers, bakeries, florists, equipment rental companies, furniture retailers, and contractors are just some examples of businesses that might have non-passenger vans and need a cargo van policy.

Because many different businesses purchase these policies, it’s important to find one that provides the protections a specific business needs. An insurance agent who specializes in cargo van policies can help businesses find a policy that suits their needs well.

Can passenger vans be insured with cargo van policies?

Passenger vans are also normally insured with commercial van insurance policies. The same policies usually aren’t used for both passenger vans and cargo vans, though. A cargo van policy is unlikely to provide all of the injury coverage that passenger vans require. A passenger-specific commercial van insurance policy is normally better for passenger vans.

What protections are available through cargo van policies?

Most cargo van policies include a combination of standard and optional protections. Some of the protections that businesses ought to consider are:

Do cargo van policies protect equipment and inventory stored in vans?

Whether cargo van policies extend coverage to items stored in vans depends on the specific terms of a policy. Some policies provide extensive coverage for equipment, tools, supplies and inventory, but others offer only limited coverage. In some cases, even a generous policy may still not provide sufficient coverage for expensive and specialized equipment.

If a cargo van policy doesn’t provide sufficient coverage for onboard items, additional protection is usually available through a supplemental inland marine insurance policy. Inland marine may be purchased separately, or lumped into a broader commercial policy along with commercial van insurance coverage. 

Evaluating this risk and finding a suitable solution is something that a knowledgeable insurance agent can help evaluate.