Is Personal Use of an LLC Vehicle Covered By Company Insurance?
The answer will depend in part on the terms of any applicable insurance policies. A person’s personal auto insurance may cover losses when the person is driving another vehicle. If the LLC carries insurance on the rentals, it would be a matter of the terms of the policy and whether coverage for personal use is included. We suggest you find out the extent of coverage that is available for your corporate RV. Once you know the extent, talk to your insurance agent about any additional coverage you might need.
The operating agreement of the LLC will also be a factor. If personal use of the RV is not allowed, then the use would be deemed unauthorized and an accident would be outside the scope of the company’s liability. Generally, if the use is strictly personal and there is no insurance coverage, the company would not be liable for an accident.