What is the liability of a car in my personal name but used primarily for business?

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What is the liability of a car in my personal name but used primarily for business?

I have a truck that is in my name but is used primarily for business and the business makes the monthly payment (LLC). It is covered under a commercial policy. If I were to be in an accident could they come after me? My wife drives the truck on occasion but for personal use and is on the loan could they go after her if she got in an accident? My wife does not work for the company but is on the commercial insurance policy.

Asked on February 24, 2012 under Accident Law, Alaska

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

The LLC could be liable for an accident in the event of fault (as a general proposition, only when there is fault, like careless or reckless driving, is there liability), since the LLC is the owner of the vehicle; however, note that at-fault driver could be personally liable, too. The fact that your business is an LLC, therefore, does not necessarily insult you from liability if you (or your wife) are the driver and are at fault, since any at-fault driver can be sued. Of course, the insurance may cover it--though note: a commercial vehicle should probably not be driven for personal reasons; the way a vehicle is used needs to match how it is insured--and even if it does not, as the LLC owner, you could direct the LLC to indemnify you/your wife, or pay on your behalf.


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