Personal Auto Insurance Covering LLC

[jdmorton]

I know there are some of you who have formed a limited liability company (LLC) for various and sundry reasons while near or during retirement - me included. For my LLC, I need to have various types of insurance - general business and professional liability. One thing I did not have is business auto insurance - until now.

I got my personal auto renewal recently and - in all my spare time - I noticed my insurance company had changed the definition of "You", "your", or "Named Insured" to also mean any LLC if said LLC was included in the declarations part of the policy. It went on to say this includes "any natural person designated as a member or manager of the Limited Liability Company (LLC), but only while such a person is acting within the scope of their duties as a member or manager."

This is kind of a big deal for me as I am being asked about providing consulting engineering services to some large companies that are starting to mandate business auto insurance, in addition to the usual business insurance, for its consultants.

So, for no additional fee, I now have business auto insurance coverage for my LLC in addition to my personal autos.

For those of you with an LLC that need or desire business auto insurance coverage, is this available through your personal auto policy? I was wondering how common this is with other insurance companies,

[mathjak107]

the definition of "you " in auto insurance policy's has been a minefield .

many define "you " as also you and your spouse ..

there was a famous case where husband and wife used two different insurance company's . the husband borrowed the wife's car while his was in service .

well , he had a horrible crash and found out that he was uninsured because he was not listed on his wife's policy since he had his own .

by definition of the word "you " that car was not a temporary car driven by him but rather a car owned by him and not listed on the policy .


one word of caution , do not drive each others car unless you both are on the same policy .

we did that unknowingly when we got married .

we each had different insurance company's and we figured when one was up we would see who's is lower and switch . luckily nothing happened because my policy when i looked does define "you" as yourself or spouse .

so while our insurance covers us when we drive a non owned temporary auto , the word " you " makes it a car owned by us by association to our spouse but yet we are not listed as a driver on that policy . by definition it is not a car not owned by "you"