Do Private Investigators Need Special Insurance?

private investigator taking photos

Many drivers delivering pizza or other goods overlook the fact that, depending on their insurer, they may need special auto insurance in order to be covered for accidents that happen while on the job.

That’s because most insurers will typically exclude coverage for accidents that happen while the personally insured car is being used to transport people or goods for business purposes—after all, these are personal car insurance policies. Special coverage would be needed for these business-related uses.

This got us thinking about another career that requires frequent driving: private investigators. Do they need special insurance other than their own personal policy to be covered while tailing their targets?

According to John Sullivan, who has worked in the industry since 1977 and is president of American Insurance in Idaho, which provides coverage in seven western states, the short answer is no, a PI does not need special insurance—a fact that carries over to many people who use their car for work for non-delivery purposes.

Bob Passmore, the senior director of personal lines at the Property Casualty Insurers Association of America, says policies commonly exclude business use that involves transporting goods and individuals from one place to another, but transport of the policyholder himself or herself in the course of a business duty would not typically be excluded.

“When you’re carrying someone else’s stuff and when you’re carrying someone else, that is the business,” Passmore says of businesses like taxis and pizza delivery. “That’s different than you driving yourself.”

When Passmore used to work as an insurance claims adjuster, he’d routinely use his own personal vehicle for driving from job to job, he says. That wasn’t excluded on his policy and wouldn’t necessarily be excluded on others; it would depend on the specific policy.

In short, if you have a personal policy, you are usually covered, including if you are a private investigator or sales person. However, coverage with risky businesses can get into a grey area, Sullivan says.

As Sullivan wrote in an article on his company’s website, “Even if not specifically excluded, how you use your vehicle may not be an acceptable risk to the insurance company under a [personal policy]. The insurance company may charge additional premium for certain ‘business use’ or refuse to insure or cancel policies when the use presents too much risk.”

This situation is a catch-22 for some people. “People may not want to talk to their company about it because they would have to pay more, but their silence may really bite them,” Sullivan said.

Passmore notes that coverage language varies from policy to policy, so all you PIs need to look at your policy carefully and ask your agent about the specifics of coverage for any grey areas.

Even if PI work isn’t covered under the coverages you initially purchased, insurers will typically offer add-ons that would close up any gaps in protection.

(Readers can find out more about getting coverage when using their cars for jobs like pizza delivery here.)