What is Employers Liability insurance?

If your business employs anyone - even just one person - by law you must have Employers Liability insurance. You also need to prove it, by displaying a current certificate of Employers Liability on your premises. Employers Liability Insurance pays compensation if any of your employees are killed, injured or become ill as a direct result of their work. As you can imagine, the claims (plus legal costs) could be much higher than your business could afford - hence the need for insurance.

What is Public Liability insurance?

If your work means you come into contact with members of the public and their property - and that includes customers - then you really should have Public Liability insurance. Without it, you could face losing your livelihood. Public Liability insurance covers you if you’re unlucky enough to injure someone or damage their property, and they sue you for compensation. As well as the amount of compensation involved, you’d probably be liable for their legal costs too; all in all it could be a significant amount, which you might only raise by selling your business – unless you have Public Liability insurance.

Why does my price keep going up?

A lot of people are confused as to why their van insurance policy costs more each year. In a lot of cases your price will rise, even if you have been claim free for the year, not changed any of your circumstances or your vehicle. This can even be true for people with maximum No Claims Bonus. The simple reason is that van insurance companies are forced to put prices up most years to cover the operational costs the industry experience. As mentioned elsewhere in the buyer’s guide, van insurance companies have to contribute each year to the Motor Insurers Bureau fund to cover the costs of claims involving un-insured drivers. This contribution is rising each year as there are more uninsured drivers on the road. In addition, the costs of everyone’s claims are rising. More people are claiming for personal injury than previously, and with the increase in the number of new vehicles on the road, van insurance companies have to pay higher amounts for repairs or replacements to vehicles involved in claims. The knock on effect to all of this is that we have to pay more for our van insurance policies.

Should I always choose the cheapest Van Insurance quote?

Not necessarily. As with most things in life, cheapest van insurance quote does not necessarily mean the best. It is vital that you consider this when you obtain a van insurance quote as by simply choosing the cheapest van insurance policy possible, you could leave yourself short in the event of a claim. Make sure you choose a van insurance policy that provides you with the correct level of cover to suit your needs. You may want to stick to a larger van insurance company or a name that you trust. Check what they include in the van insurance policy they are offering you by reading policy documentation or asking questions before you make the decision to buy. Take advantage of the optional extras that Gladiator can offer you. These extras provide you with cover that you would not have in a van insurance policy and can keep you on the road and in business where normally you may be stranded. If in doubt, don’t be afraid to give us a call with any questions. Our friendly experts are here to help you and should be able to provide you with clarification on any point you are unsure of.

Your Address & Van Insurance

Your home Address is a very important factor to your van insurance company for many different reasons. Firstly, you will tend to find more vehicles on the road in built up areas. As a result, your van insurance company will probably perceive that you are more likely to be involved in an accident whilst on these roads. There is also a greater risk that your vehicle will be hit by another driver. This could cause a problem for your van insurance company as if you were to be hit by an uninsured driver then they would be liable to pay for any claims. Your address is also considered when assessing the potential theft risk. Every town will have areas that are considered higher risk than others by van insurance companies. What could be considered a lower risk part of town for household insurance may actually prove to be a higher risk from a van insurance point of view.

Vehicle Use & Van Insurance

It is very important to disclose to your van insurance company exactly what you are using your van for. Some uses will result in your vehicle being used in places or in a way that may make it more likely to be involved in a van insurance claim. For example, a courier or parcel delivery driver is likely to be on the road all day and will do a lot of driving in built up areas and on motorways. There is therefore far more likelihood of their van being involved in a claim than that of a builder who drives to a site and parks up all day

Vehicle Age & Van Insurance

Van insurers look at vehicle age in two different ways. A newer vehicle is likely to be more expensive to repair in the event of a claim as they tend to be more valuable than older vehicles. In addition, people are more likely to want to keep their newer vehicle looking good, and therefore would be more likely to claim for any scratch or scrape. The perception for some insurers is that people owning older vehicles would be less likely to take care of their vehicle when compared to drivers of newer vehicles. In addition, it can be more difficult to get parts for older vehicles should they need to be repaired following a claim. As a result of these points, van insurance companies are likely to write off older vehicles in the event of a claim rather than having to effect a repair. However, as these older vehicles are likely to be of less value than newer vehicles, the cost of claims is likely to be reduced.

Vehicle Value & Van Insurance

The value of your vehicle is very important from the point of view of your van insurance company. It is obvious that a van insurer will pay out less for a van valued at £500 if it is stolen compared with a van valued at £35,000. The same is true of repairs following an accident. If a low value van is damaged in an accident then the van insurer will pay out a small amount as the vehicle is likely to be written off. Compare this to the van insurer’s potential payout to repair a van valued at £35,000 that is involved in an accident. Some van insurers will not insure low value vehicles as they can sometimes be of the opinion that someone with a low value vehicle will not be as worried about taking good care of the vehicle as someone with a higher valued vehicle.

Security & Van Insurance

Van insurers will always be interested as to what security you have fitted to your vehicle. Items such as engine immobilisers and Trackers should always be disclosed to van insurers as some van insurers will not offer cover in certain areas without security fitted to the vehicle. In addition, by fitting extra security to your vehicle it shows the van insurance company that you care a bit more about your vehicle and are trying to protect it. As well as possibly putting you in a favourable light with your van insurance company, fitting extra security is also great for your own peace of mind. By fitting extra door locks to your vehicle you will provide a bit of extra protection for your tools and equipment.

Occupation & Van Insurance

Your occupation is one of the most important rating factors when considering van insurance. Some occupations may involve the carriage of dangerous or hazardous goods. Van insurers would need to know if you do carry anything that would fall into this category as it would be something that would be excluded by a lot of insurers. A good example is demolition contractors. They may well carry explosives that could be used in the course of their day to day business. Other occupations would mean that you are on the road a lot more than other drivers. For example, courier drivers would tend to be on the road a lot more than a builder as a builder would tend to drive to a site and park up for the day while they are carrying out their work, whereas a courier would be constantly in and out of his van delivering parcels. As a result, the majority of van insurance companies would charge a courier more for his van insurance than a builder. Several occupations may be considered to be lower risk by some van insurance companies. For example, florists will be delivering flower bouquets and therefore would tend to take great care when driving so as not to ruin the display. The same could be said for occupations such as antiques dealers. Some occupations may increase the theft risk of your vehicle. For example, those trades that may involve the transportation of high value goods may make your van a target for thieves. Van insurers may consider this when calculating a premium. It is vital that you inform your van insurance company of your correct occupation when you get a quote. If you are unfortunate enough to have a claim and have declared your occupation incorrectly, then you could find your van insurance policy is declared void and you may be liable for any costs incurred yourself.

Mileage & Van Insurance

Your van insurance company will need to have an accurate approximation as to how many miles you will be covering in a year. Generally, most van insurance companies will agree that the more your vehicle is on the road, the more chance there is of you being involved in an accident. Therefore, the higher your mileage, the higher your premium. Another train of thought is that if you drive very few miles per year, you are less likely to be used to the handling attributes of the vehicle and therefore your inexperience may make you likely to have an accident. Wherever possible, you should make your mileage estimation as accurate as possible. In the event of a claim, it is not unusual for a van insurance company to request previous service records or MOT certificates to check that the mileage stated is accurate. Although van insurers do not expect you to be exact with your estimated mileage, they may charge you an additional premium if your mileage is way above the figure you stated when you got your van insurance quote.

Driving Convictions & Van Insurance

It is important that you inform your van insurer of any driving convictions that you may have. As you can imagine, the number and type of convictions that you may have will have a large bearing on the premium your van insurer will charge you. As with claim history, every van insurer will have a different standpoint on convictions and whether they make you a higher or lower risk. Some van insurers will argue that drivers with more than 6 points on their licence represent a high risk as it could show a reckless attitude. However, some van insurers take the view point that drivers with a lot of points are close to losing their licence and therefore may be more likely to take care with their driving, especially if they rely on their van to carry out their business. When you consider the type of conviction, speeding convictions are now very common and as a result, most van insurers will not penalise drivers with one speeding conviction too heavily. However, if a driver has several speeding convictions, a van insurer could consider them to be more likely to have an accident due to their perceived reckless attitude. In all cases, it is a good rule of thumb to remember that the more convictions and points on your licence you have, the more you are going to pay for your van insurance.

Number Of Drivers and Van Insurance

The number of drivers on your insurance policy can affect your price greatly. For example, some van insurers may argue that the more drivers that are named on your policy, then potentially the more hours of the day the vehicle could be on the road. If you think of a delivery firm, they could conceivably have a vehicle on the road 24hrs a day by operating three eight hour shifts. On the other hand, some van insurers may say that if you have two drivers on a policy, then they are able to share driving duties and as such will be more rested and awake at the wheel. This may well reduce the risk of you having a claim. Any driver policies tend to be very expensive with most van insurance companies. The main reason for this is the van insurer is unable to get an exact history on the drivers who may drive the vehicle.

How important your Previous Van Claims History

Van insurers will always want to know your claim history from a period between 3 and 5 years. This includes all claims and incidents, regardless of fault and including theft. Some van insurers have statistics that prove that drivers who have had a fault claim in the last 3 years are more likely to be involved in a fault claim in the future. In addition, some van insurers can also provide statistics that show people who have had a non-fault claim in the past are more likely to be involved in a claim in the future. One thing to remember is that some van insurers have access to databases that will cross reference your details with a claims database when you take out a policy. If you have not provided correct information, then your new van insurer may well ask you to pay an additional premium or may cancel your policy.

Why does my Van Insurer ask so many questions?

In order to work out a price, or premium, for your annual van insurance policy, your insurer will need to obtain a lot of information from you. These pieces of information, known as rating factors, are then used to calculate your premium. Many people think that a lot of the questions asked by van insurance companies are not relevant to them obtaining a price, however this is not the case. Over the years, van insurers gather information from thousands of policy holders and compile these into rating charts that calculate the probability of someone making a claim. They then apply these probabilities to the data you provide and work out your price. To try and explain how some insurers may interpret information, we have looked at some of the most important rating factors and why they may affect the premium you pay. The most important thing to remember is to always answer the van insurer’s questions truthfully. Some people in the past have tried changing their answers provided to van insurers in order to reduce their premium. This may work in the short term, but in the event of a claim being investigated, you will find that your policy could be declared void from inception. As a result, you may become liable to pay any claims costs and could also be prosecuted for driving with no insurance.