Help with liability in starting business

[Geddes84]

Jurisdiction

New York

Hi, I'm looking into starting a transportation business where myself or people working for me drive customers around in the coustomers vehicle. I don't know how to start looking at the liability side of this. I think I should definitely start a LLC but, would I need to also have insurance for the business or would my and the people driving for me having existing car insurance be enough?

 

[army judge]

Hi, I'm looking into starting a transportation business where myself or people working for me drive customers around in the coustomers vehicle. I don't know how to start looking at the liability side of this. I think I should definitely start a LLC but, would I need to also have insurance for the business or would my and the people driving for me having existing car insurance be enough?

Your idea must be 70-80 years old, mate.

Okay, if you want information on types of insurance, you talk with an insurance broker, or insurance agent.

You can also talk to the customer service line of the larger companies to learn more about what the company covers.

You'll also find yourself competing with auto hauling trucking companies that haul 8-10 cars across the USA, too.

Here are a few companies that already offer the service you are deliberating over:
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Driveaway Across the USA! Auto Driveaways - GoNOMAD Travel
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Home - Auto Driveaway
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Custom Auto Delivery, car shipping, Auto Transport, door to door, ship your car, auto movers, drive my car, auto shipping, driveaway, move my car, move my truck, professional auto and truck transport
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Custom Auto Delivery, Auto Transport, door to door, ship your car, auto movers, drive my car, auto shipping, driveaway, professional auto and truck transport
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There are more out there, doing what you're thinking about doing.

Frankly MOST people don't want a stranger driving there car hundreds of miles.
Plenty of car owners, myself among their number, avoid valet parking.
A car is a very personal space, and many people don't want others occupying that space.
That's why automobile car forwarders were born.
Some of these businesses provide car hauling as well as private driver forwarding.

Anyway, good luck.

 

[adjusterjack]

myself or people working for me drive customers around in the coustomers vehicle.

I took that to mean that you want to be a chauffeur and drive customers around while the customers are in their own cars.

I think I should definitely start a LLC but, would I need to also have insurance for the business or would my and the people driving for me having existing car insurance be enough?

1 - An LLC will not protect you from your personal liability for causing damage or injury while driving somebody else's car.

2 - The customer's car insurance excludes any claims that occur while the car is being operated "in the automobile business." You need only read your own personal auto policy to verify that.

3 - So, yes, you will need your own Commercial Automobile Policy. Count on spending several thousand dollars a year for it.

 

[Michael Wechsler]

I'm going to raise another issue of liability that has been made famous by Uber - background checks. Remember that you're not just going to need insurance for auto related issues. You're providing a personal service. And the corporate structure such as an LLC or C corp which provides "limited liability" doesn't mean that you're automatically shielded from all liability. In addition to law, contracts and general policies will usually require you to accept certain kinds of liability in order to operate certain types of businesses.