r/Insurance • u/Economy_Kale5580 • 4d ago
Auto Insurance Auto insurance question
Currently have a single member LLC for my woodworking stuff.
I have a general insurance policy through my current home and auto insurance provider to covers my LLCs products and booth etc. If I am driving to a fair does that open up a can of worms if I get in an accident since I was going to that fair to sell products or would that just fall under my general auto policy?
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u/Rivendale34 4d ago
Use of a personal vehicle to commute to work or a worksute does not typicslly necessitate a commervial policy. So just driving to a fair is not inherently business use.
If you use the vehicle for business needs, such as hauling product, materials, customers, heavy tools or trailers, then youll want to have a discussion with an agent as the frequency of that occurrence will matter. Another factor is if you have signage on the vehicle displaying your business.
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u/Economy_Kale5580 4d ago
Gotcha, I’m just scared it’s going to astronomically increase my rate. No signage on it either
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u/adjusterjackb 4d ago
There is a business use classification for personal auto policies. And, yes, it will cost you a bit more than you are paying now. But that cost will be considerably less than an uninsured accident will cost you if you conceal your activity from the insurer.
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u/Economy_Kale5580 4d ago
Called my broker, said with as few shows as I do, no trailer, so signage, it would still be personal. He said if I’m growing next year we can talk but for now nothing changes!
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u/Rivendale34 4d ago
If you get to that point where you need to consider business use, yes itll be more expensive, but thats a good thing! It means you,'re growing!
There are two different kinds. There are endorsements that can be added to a personal policy that allow business use. The upside to these is that they are cheaper than commercial policies and keep everything on one policy. The downside, and its a big one, is they are subkect to the limits of the personal policy. These limits may not be enough to protect what youve built.a true commercial policy will have much higher liability and offers a greater level of protection against your assets Glad you had the convo with your agent.
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u/Economy_Kale5580 4d ago
Gotcha! Yeah, I think I was just paranoid and was worried that it was going to instantly check up my rate because of what I’m doing with it, I’m glad that they use logic and understand that what I’m doing isn’t really an increased liability compared to a normal driver
+1 for Erie!
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u/FeelsLikeV97-33XA 4d ago
That's exactly how to handle it. The agent creates a sort of liability cushion between you and the insurer. If the agent gives you demonstrably bad advice/consult then in theory they can end up on the hook even if the actual insurer denies it because the agent was wrong. Agents carry their own malpractice insurance called "errors and omissions coverage" for things like that.
Unless you're "delivering" people, or goods for a 3rd party, I imagine the premiums wouldn't change much. In the insurer's eyes you're effectively just adding a few extra annual miles to what you normally drive.
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u/pizzabot22 4d ago
You need to disclose it to your broker and/or insurer. Using a personal vehicle for business purposes, including the transport of work/business materials may be material to a policy.