Vehicle breakdown cover for businesses

Breakdown cover makes sure that if your business vehicles break down, you can get them back on the road as quickly as possible.

The first and main difference will be between those businesses with many or only one vehicle.
Smaller businesses with only one vehicle or those using a personal vehicle for business purposes may be able to use a standard breakdown policy. You should check the terms and conditions of any breakdown policy before you go ahead to make sure business use is not excluded.
Fleet breakdown cover covers businesses with multiple commercial vehicles. This can include vans, cars and motorcycles. You purchase one breakdown policy that covers all the vehicles in one go.

Business breakdown cover comes with some options:

This is the most basic level of cover and is usually available if you break down a mile away from your registered address. If you break down, the breakdown provider will send someone to you to try to repair the vehicle. If this is not possible, then you will need to be towed to a garage or your home – this is usually an additional level of cover.

This cover is to tow your vehicle if it cannot be repaired at the roadside. You will need to check the conditions and your choices of where you can be towed when buying your business breakdown policy.

This breakdown cover is if your vehicle won’t start when you are at home. The breakdown policy provider will come to your home to make the repair and let you get back to business as quickly as possible.
Other options for your breakdown cover include onward travel – this is the option to include transport to your final destination and if you are a transport company with passengers it can also include onward travel for them too.

It is not mandatory to have business breakdown cover, but it will help to minimise disruption to your business if you do break down. While it is another cost for your business, the additional cost of delays or disruption to your business in the event of your vehicle breaking down could cost even more. Your business reputation and relationship with customers could also be severely affected if you cannot perform your services or deliver your goods on time.

Business breakdown cover can be applied to most types of road vehicle, including lorries, vans, cars and motorcycles. You must check your breakdown policy to make sure it has the right cover for all your types of vehicles.

Any business that relies on vehicles to deliver its goods or service should consider breakdown cover. Applicable businesses include:

• Taxis
• Couriers
• Haulage firms
• Minibus companies
• Ice cream vans
• Mobile catering companies
• Removal firms
• Maintenance firms
• Painters and decorators
• Builders
• Takeaways.

Breakdown cover is considered a form of insurance by HMRC and is therefore is exempt from VAT.

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