West Coast Insurance Services

Q: "Why would I need a commercial auto policy?"

A: There might be a couple of reasons. First, if your vehicle is registered to the business entity, a personal auto would not be appropriate as it would not extend coverage to the business. Secondly, almost all personal auto policies contain a "livery exclusion". This exclusion voids coverage if the vehicle is hauling goods or persons for hire or compensation. For example, a trainer who charges customers for hauling horses to shows would need a commercial policy. There are several coverage differences, but the most notable would be the treatment of trailers. A trailer of any type, under a personal policy, would be included for liability coverage automatically, as an extension of the power unit pulling it. Under a commercial policy, this would only be true of "utility trailers" (defined as those with a capacity of 2,000 lbs. or less). All other trailers must be scheduled on the policy for coverage to apply. In either case, physical damage is only provided when specifically added onto the policy.

Q: "Would my employees be covered under my liability policy?"

A: Employees, acting within the scope of their employment, are covered under your liability policy. However, there is no coverage for injuries to your employees, as this is a subject matter for workers compensation coverage. This would be true even if you don't directly compensate your employees (ie: volunteers, exchange of labor, bartering for services, etc.).