Livery Services Exclusion

What Does Livery Services Exclusion Mean?

A livery services exclusion refers to the exclusion of coverage in an auto insurance policy for a vehicle used to transport people or goods for a fee. To have coverage for livery services, a vehicle must be insured under a business vehicle insurance policy. Drivers who regularly accept payment for rides or deliveries usually need a separate commercial auto insurance policy, since a standard personal auto policy will not respond to claims that arise during paid trips.

Insuranceopedia Explains Livery Services Exclusion

Car insurance policies are explicit about this exclusion: insurers will not provide coverage if an insured vehicle is used for paid services, such as driving passengers like a taxi or delivering goods for a fee like a commercial delivery vehicle. This exclusion has become problematic with the rise of car-sharing services like Uber, where a private vehicle can be used for paid transportation. It is considered wise to purchase a commercial car insurance policy if you drive people or goods for a fee. Anyone driving for Uber or Lyft should look into rideshare insurance for Uber and Lyft drivers, which fills the gap between a personal policy and a full commercial one. Drivers who carry packages or food for pay can run into the same exclusion and should check whether courier business insurance fits their situation better.