Business breakdown cover

If you operate vehicles as part of your business, or provide vehicles to your employees, commercial breakdown cover can be a business lifeline if you’re facing a deadline and a car or van develops a problem.

What is business breakdown cover?

Business breakdown cover is breakdown insurance designed for commercial vehicles. You can choose between vehicle cover, which means that any driver is covered to drive your business vehicles; or personal cover, which means your drivers are covered to drive any of your business vehicles.

What factors are taken into account when determining the cost and eligibility of business breakdown cover?

Eligibility criteria and cost will vary by insurer, but can include the following:

• Passenger. Vehicles must only carry the manufacturer’s recommended number of people, and no more than nine people.
• Weight. Vehicles must weigh less than 4,000kg, including load.
• Dimensions. Vehicle dimensions must not exceed: 7m long, 3m tall and 2.55m wide.
• Maintenance. Vehicles must be regularly serviced and used appropriately, as well as having a valid MOT when required.

What cover options are available?

Policy specifications will vary by provider, but usually include the following options:

• Roadside assistance. This is the most basic form of breakdown cover and should be included within all breakdown policies. Roadside assistance ensures that if your car breaks down further than a quarter of a mile from your work, someone will be sent to assist you on the road. If your car cannot be fixed on the roadside, it will typically be towed to a nearby garage.
• National recovery (relay). Also known as vehicle recovery, this type of cover is the level up from roadside assistance. National recovery means that, if your car can’t be fixed on the roadside, it can be towed to any location of your choice within the UK.
• At work. This is the business equivalent of home start insurance. At work cover provides you with cover should your vehicle break down at your place of work or very near to it (usually within a quarter of a mile to a mile radius of your work).
• European cover. This protects you on the roads when you’re driving in Continental Europe.
• Accident care. This is usually an add-on to a national recovery policy, and means that you’ll get assistance with vehicle recovery, repairs and processing insurance claims after accidents or vandalism.
• Onward travel. If your car can’t be fixed on the side of the road, having onward travel cover means that you will be offered a way to continue your journey. Some companies offer to reimburse you for public transport costs, pay for an overnight hotel stay or offer a replacement car hire while yours is being repaired.

How to find the right level of cover for my business

When trying to decide how much cover to take, you should consider the following elements:

• How many cars your business operates
• The size and type of vehicles you operate
• Which employees usually drive your car (and if this changes)
• Whether you want to cover the cars or the drivers
• Whether your drivers have to drive to Europe often

There may be other considerations, depending on the type of business you operate. One thing to remember is to shop around and compare policies to find the best value deal for you.

Frequently asked questions about business breakdown cover

• What vehicles are covered under a business breakdown cover policy?

  This will vary by provider, but most insurers should be able to cover cars, light vans, motorhomes and motorbikes, as long as they’re privately or commercially registered in the UK and have been serviced and looked after as recommended by the manufacturer, and used legally. Some restrictions relating to the weight and size of the vehicle may apply.

• Can anyone drive a vehicle under a business breakdown cover policy?

  This depends on the type of policy you take out. Vehicle cover means that any driver is covered to drive your commercial vehicles, while personal cover means your drivers are covered to drive any of your business vehicles (as long as they are authorised and qualified to do so).

• Can I add vehicles to my policy as my business expands?

  Yes, most insurers will allow you to add vehicles to your cover, though some conditions may apply.

• What happens if my vehicle needs repairing outside of business hours?

  Your cover is valid 24/7, but if the approved repairer that the insurer needs to take your car to is closed, you can have the vehicle taken to where it is usually kept. The insurer will then collect the vehicle the next day (or whenever is convenient for you) and deliver it to the chosen repairer.

• Can I get different levels of cover for different vehicles?

  You may be able to get different levels of cover for different vehicles (for example, national recovery for some vehicles, and national recovery+European recovery for others). However, it’s best to give the insurer a call and arrange this over the phone, rather than take the policy out online.

• Do I get a multi-vehicle discount with business breakdown cover?

  Some providers will offer cheaper premiums per-vehicle if you get cover for a higher number of vehicles. So, for example, getting cover for 5 vehicles may cost £100 per vehicle, whereas getting cover for 20 vehicles may cost £75 per vehicle.