Updated 2026-11-01
Many people start a business with the van they already own, insured on a personal policy. That can work for a while, but some kinds of use usually call for a commercial policy.
Signs a commercial policy fits
- The van is titled or registered to a business
- You deliver goods or carry freight for a fee
- Employees or helpers drive the van
- The van carries signage, permanent shelving or equipment
- A customer or contract asks for a commercial auto certificate
- You need higher liability limits than a personal policy offers
Why the policy type matters
Personal auto policies are written for personal and commuting use. Many exclude or limit coverage when the vehicle is used to carry property for a fee, and some limit coverage for vehicles owned by a business. If a crash happens during work and the policy does not cover that use, the claim can be denied.
What insurers ask
Expect questions about what the van carries, how far it travels, where it is parked overnight, who drives it, and whether it crosses state lines. Be accurate: misstating the use can lead to a denied claim or a cancelled policy.
Occasional business use
If business use is light, such as a contractor occasionally carrying materials to a job, some personal policies may still apply. Ask your current insurer in writing how they treat your specific use, and keep the reply.
Making the switch
When you move to a commercial policy, line up the new coverage before cancelling the personal one. Tell your lender or leasing company about the change, and update any certificates customers hold.
Keep the paperwork
Save the declarations page and any endorsements that describe business use.