What Does Livery Services Exclusion Mean?
A livery services exclusion is the non-inclusion in auto insurance coverage of a vehicle that drives people or goods for a fee. For a vehicle to be covered for livery services, one must have business vehicle insurance.
Insuranceopedia Explains Livery Services Exclusion
Car insurance policies are clear on this exclusion. Insurers will not pay insurance money if an insured vehicle is being used for paid services, such as driving people like a taxi or delivering goods for a fee like a commercial delivery vehicle. This has become problematic with the rise of car-sharing services like Uber where a private vehicle can be used as a paid conveyance. It is considered prudent to purchase a commercial car insurance policy when one drives people or goods for a fee.