If your van is essential to how you earn a living, getting the right insurance is not optional. Whether you are self-employed, a sole trader, or running a limited company, van insurance rules can vary. Get it wrong, and you could find yourself uninsured at the point you need to claim.
This guide explains the differences, and what you should be aware of when getting van insurance for your business.
Why your business structure matters for van insurance
Van insurance is not just about the vehicle. Insurers look closely at:
• Who owns the van
• Who is driving it
• What it is used for
• Who benefits financially from its use
Your legal business structure determines how those questions should be answered. If the policy details do not match reality, insurers can reject claims or cancel policies.
Van insurance for the self-employed
If you are self-employed, you usually obtain insurance as an individual rather than as a separate legal entity.
In most cases:
• The van is owned by you personally
• You are the main driver
• You are named as the policyholder
For insurance purposes, this is fairly straightforward. You will normally need a commercial van insurance policy, not standard social, domestic and pleasure cover. Business use should reflect what you actually do, such as carrying tools, equipment or making multiple work-related stops.
Common mistake:
Many self-employed drivers assume that adding “commuting” or “SDP” cover is enough. It usually is not. If the van is part of how you earn money, it almost always requires commercial use.
Van insurance for sole traders
From an insurance perspective, sole traders and self-employed individuals are treated very similarly. Legally, there is no separation between you and the business.
Typical setup:
• Van is owned personally or in the business name
• Policyholder is you as an individual
• Business use must be clearly declared
The key point is honesty about usage. If you are a tradesperson, courier, or delivery driver, insurers need to know:
• What goods you carry
• Whether you carry goods for hire and reward
• How often the van is used for work
If you sometimes use the van for personal errands, that is usually okay. This is true if the policy allows mixed use.
Van insurance for limited companies
This is where things become more complex, and where we see the most issues.
A limited company is a separate legal entity. That changes how insurance should be arranged.
There are two common scenarios:
1. The company owns or leases the van
In this case:
• The limited company should be the policyholder
• Directors and employees are named drivers
• Use is declared as business use or commercial hire where relevant
If a director insures the van personally when the company owns it, insurers may refuse a claim. Ownership and policyholder must align.
2. A director owns the van personally
This can still work, but it must be structured correctly:
• The director is the policyholder
• Business use for the limited company is explicitly declared
• The insurer accepts company-related use
Not all insurers are comfortable with this setup, which is why broker advice matters.
What about employees and multiple drivers?
If your business has grown and more than one person drives the van, your insurance must reflect that.
Limited companies often require:
• Any driver or named driver policies
• Employer liability considerations
• Clear declarations around delivery, trade or courier work
Trying to save money by insuring a single driver when others use the van regularly is risky. Insurers will investigate after a claim, not before.
Non-standard situations we see every day
As brokers specialising in non-standard and commercial risks, we regularly help clients who have:
• Multiple business activities
• Courier or hire and reward usage
• Mixed personal and business ownership structures
These situations are not uninsurable, but they must be presented properly. Online comparison sites often struggle with anything that does not fit neatly into a box.
The cost difference: is Ltd company insurance more expensive?
Not always. While limited company policies can be slightly more complex, price is driven more by:
• Driver history
• Vehicle type and value
• Usage and mileage
• Claims and convictions
We regularly see limited company policies priced competitively when set up correctly. Problems arise when details are incorrect or incomplete.
Final thoughts
Your van insurance should reflect how your business actually operates, not how you think it should look on paper.
If you are unsure:
• Who should be the policyholder
• Whether your business use is correct
• If your structure has changed since taking out cover
It is worth checking now, not after an accident.
As insurance specialists, our role is to ask the right questions and place cover that protects you when it matters. Whether you are self-employed, a sole trader or running a limited company, the right advice can make the difference between a smooth claim and an expensive problem.
If your van keeps your business moving, your insurance needs to keep up with it too.
