Damage, theft and liability: the biggest risks for commercial vehicles in the Netherlands
Company cars are indispensable to many business owners. They transport goods, transport staff to customers or are simply the beating heart of a service business. But with intensive use also comes an increased risk of damage, theft and liability issues. Any incident can lead to high costs or even business downtime. In this article, we list the three biggest risks and show you how the right insurance can help you stay in control of these uncertainties.
Why good insurance is important for business owners with a company car
Whether you run a sole proprietorship or have a growing SME with multiple vehicles, a reliable company car is often essential for your work. At the same time, those same vehicles also pose a financial risk. One accident, a break-in or a legal claim can cost thousands of euros. Moreover: without replacement transportation, part of your services may come to a standstill, which means direct loss of revenue. Therefore, insure your company car properly and guarantee your business continuity.
Collision or weather damage is the most common risk
Damage caused by collisions, parking dents or skidding incidents remains the biggest claim for commercial vehicles. This is not surprising: nearly 1.1 million vans will be driving around the Netherlands by early 2025, an increase of 4.4% from a year earlier. Together, these vehicles travel more than 19 billion km annually, according to figures from the Central Bureau of Statistics. So these are huge numbers that are often used intensively on a daily basis. On top of that, Dutch roads are busy and the weather can be treacherous, with risks such as slipperiness, heavy rain and fog.
With such numbers of vehicles and risks, good insurance is important. Third-party liability (TPL) insurance is mandatory, but only covers damage to others. Damage to your own vehicle requires limited or full hull coverage, which is highly recommended especially for new or expensive commercial vehicles.
Prevention tips:
- Make sure drivers are trained in defensive driving.
- Invest in vehicles with driver assistance systems (ADAS).
- Have tires, brakes and lights checked regularly.
Theft of vehicles or valuable cargo is more common than you think
Thousands of company vehicles are stolen every year in the Netherlands, and at least as often burglaries occur in which tools or equipment disappear. For sectors such as construction, installation and engineering this is a big problem: tools can be worth thousands of euros just like that, and without equipment a mechanic or craftsman cannot do his work.
Especially in urban areas and large parking lots, the risk of theft is increased. Good insurance can partially compensate for the damage, but prevention is better.
What can you do?
- Install certified alarm systems or track and trace.
- Make sure valuable cargo is not visible or removed from the car at night.
- Check if your policy provides coverage for theft of contents (usually additional module).
Third-party liability is an underestimated risk
As previously mentioned, mandatory third-party insurance applies to every car in the Netherlands, including for commercial vehicles. But liability goes beyond just the damage you inflict in traffic. What if your employee causes damage with a company car during working hours? Or if your vehicle loses cargo, causing damage to others?
As a business owner, make sure you know who is responsible for what and exactly what your insurance covers. Lack of clarity or underinsurance can lead to legal disputes or hefty financial claims.
Notice:
- Set clear rules for use of company cars.
- Check that drivers are on the policy.
- Consider legal expenses insurance for business owners.
Therefore, insure your company car properly and appropriately for your situation
Not every entrepreneur has the same risks. A delivery service that drives 300 km daily runs different risks than a painter who uses his bus only for short trips. Fortunately, there are different forms of commercial vehicle insurance available that you can tailor to your situation.
You can choose from different coverages: WA (liability only), WA+ (limited casco, for example for windshield damage or theft) or all-risk (full casco, including damage to your own vehicle). You can also choose additional modules, such as legal assistance, roadside assistance or passenger insurance. So it is wise to analyze your situation well and therefore insure your company car based on your daily practice and risk profile.
You can’t eliminate risks, but you can mitigate them
Commercial vehicles carry risks, but that need not be a cause for concern. By understanding the most common causes of damage, you can take targeted measures. Prevention plays a major role, but well-chosen insurance also provides security. Combine insurance with clear internal agreements and regular maintenance of your vehicles. In this way, you can ensure that your business keeps running, even when the going gets tough.