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.
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.
