Business breakdown cover

Businessman driving a car

Sometimes referred to as commercial or fleet breakdown cover, business breakdown cover is a level of breakdown insurance available to businesses wishing to protect multiple vehicles for business on one annual policy.

What is business breakdown cover?

Business breakdown cover is designed to offer protection to those that rely heavily on their vehicles for business, with cover available for a wide range of vehicles from minibuses to motorbikes.

On average, roughly 3 in 10 small businesses are affected by their vehicles breaking down every year.

What are the different types of business breakdown cover?

Similar to multi-car breakdown cover, fleet breakdown cover is designed to protect multiple vehicles on one policy, no matter who is driving.

It is available on all of the following types of vehicles:

  • Cars
  • Light vans
  • Motorhomes
  • Motorbikes
  • Mopeds

Whether your business has just 2 vehicles in its fleet or in excess of 50, fleet breakdown cover provides the same level of protection on all of your vehicles.

Taxi breakdown cover

Taxis and private hire vehicles are not typically covered by standard fleet breakdown cover, but some providers offer specialist protection for these specific needs.

Note: Uber breakdown cover is also categorised under taxi breakdown cover.

Taxis and private hire vehicles, like those used by Uber drivers, rack up immense amounts of mileage and are therefore likely to require breakdown assistance more frequently than the average driver – this is why taxi breakdown cover is crucial for all taxi and Uber drivers.

Courier breakdown cover

Some specialist insurers offer courier breakdown cover, with additional extras targeted specifically at couriers. Courier breakdown cover offers the essentials of basic breakdown cover, along with optional extras like goods in transit insurance, which covers the cost of theft or damage to goods being transported while in transit.

Goods in transit insurance is a worthwhile addition to your policy if your business relies on transporting or delivering high-value goods.

Do I need business breakdown cover if I only have one car?

Not necessarily. Unlike with car insurance, you do not need to tell your provider that you intend on using your vehicle for business purposes, meaning that you might be covered by standard breakdown cover rather than a specific ‘business’ policy.

Always read the terms and conditions of your policy to be on the safe side, though, as some exclusions may still apply and it's important to know exactly what circumstances you are covered for.

What is included with business breakdown cover?

When shopping around for business breakdown cover, you will usually be given a range of policies to choose from.

These will likely include:

  • Roadside assistance – the most basic level of breakdown cover. With roadside assistance, your provider will source a mechanic to be sent to repair your vehicle at the side of the road. If it can’t be repaired, it will be towed to a local garage.
  • Vehicle recovery – vehicle recovery gives you access to nationwide breakdown cover for all of the vehicles in your fleet with recovery to a destination of your choice within the UK.
  • Onward travel – an important level of cover if your business relies on making deliveries or meeting clients, onward travel will provide you with alternative transport to get you, or your employee, to their intended destination.

When purchasing your fleet breakdown cover policy, you’ll have the choice of adding the following extras:

  • At-home cover – if your commercial vehicle breaks down at the home of an employee or a company address, at-home insurance will ensure that you are still covered.
  • European breakdown cover for business – get the same level of protection when taking your business across the continent with European breakdown cover.
  • Misfuelling – misfuelling cover protects your commercial vehicles when they are accidentally filled up with the wrong fuel.

To learn more about the various levels of breakdown cover available, head over to Bobatoo’s complete guide to breakdown cover.

What business breakdown cover doesn’t include

Depending on your selected choice of insurance, some business and fleet breakdown cover policies will not offer protection for:

  • Couriers or delivery companies
  • Taxis
  • Other private hire vehicles (like Ubers)

Always check your policy, or ask the relevant questions to your provider, to make sure you receive an adequate level of cover.

There are also circumstances where breakdown cover providers might refuse to recover your business vehicle, or request extra payment to do so. These can include:

  • Breaking down on private land – or if your vehicle is parked in an unsafe or inaccessible area.
  • Travelling with animals – small pets are usually acceptable, but onward travel might be discretionary. Further cover is likely to be needed when travelling with livestock.
  • Breakdowns after an accident – some providers will not tow your vehicle away from the scene of an accident.
  • Failure to maintain your vehicle – if your breakdown has come as a result of poor vehicle maintenance, your provider might refuse to help – or make you a low priority case.

Read more: Basic vehicle maintenance – 8 easy ways to maintain your car

How much is breakdown cover for businesses?

Typically, the cost of fleet breakdown cover will decrease (per vehicle) as you add more vehicles to your policy. Some providers will also offer fixed prices for up to 2 years to guard against annual renewals.

Unlike standard breakdown cover, your vehicle’s specifications are not taken into consideration when receiving your quote – however, the vehicle must reach the specification provided within the terms and conditions of your specific provider.

Your breakdown cover premium will be affected by the level of cover you choose and any additional extras added to your policy.

Cheap business breakdown cover with Bobatoo

At Bobatoo, we have identified the best breakdown cover providers in the UK who also provide more specific business breakdown cover. Read our full, unbiased reviews here.

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