I was driving my vintage fire truck in the local 4th of July parade. I was moving at 3 mph, throwing candy, when a kid ran out. I swerved and hit a parked car. My insurer denied the claim, stating that the parade was a “Commercial Event” or “Exhibition” and therefore excluded from my “Pleasure Use” policy.
Key Takeaways
- Parades are Grey Areas: Is it a hobby event (covered) or a commercial event (excluded)?
- The “compensation” Test: If you were paid to be in the parade, or if you were advertising a business on the side of the truck, coverage is denied.
- Liability is the Risk: The risk isn’t damaging your truck; it’s hitting a spectator. Parade liability lawsuits are massive.
- Event Organizers Insurance: The parade organizer usually has insurance, but it protects them, not you. You are secondary.
The “Why” (The Trap): Business Use Exclusion
Policy language: “We do not cover the vehicle while used in any business, commercial, or occupation.”
If your truck had a banner for “Bob’s Burgers” on it, you were advertising. That is business use.
Also, some policies exclude “use in any organized racing or competitive event.” While a parade isn’t a race, some adjusters try to lump “organized events” together.
[IMAGE: Photo of a classic car with a magnetic business sign on the door (Risky) vs. clean (Safe)]
The Investigation: I Called Them
I asked carriers: “Am I covered in the town parade?”
1. JC Taylor
- Answer: “Yes, as long as it’s not for hire.”
- Condition: Club activities and parades are considered the core of the hobby.
- Verdict: Covered.
2. Progressive Commercial
- Answer: If the vehicle has business signage, you need a Commercial Auto policy, not a Classic policy.
- Verdict: Strict on signage.
3. Hagerty
- Answer: Covered.
- Note: They explicitly understand that parades are “Pleasure Use.”
Comparison Table
| Scenario | Coverage Status |
| Town Parade (No pay) | Covered |
| Homecoming Queen (No pay) | Covered |
| Paid to drive Mayor | Denied (Livery/For Hire) |
| Advertising your business | Denied (Commercial Use) |
Step-by-Step Action Plan
- Remove Signage: Take off any magnetic signs advertising your business before entering the parade.
- Confirm “Pleasure Use”: Check your policy definitions. “Club activities” and “Parades” should be listed as acceptable use.
- Don’t Take Money: If the organizer offers $50 for gas, accept it as “expense reimbursement,” not “payment.” If they offer $500, decline or buy a commercial binder.
- Watch the Passengers: Don’t let people sit on the fenders or hood. If they fall off, “Negligence” might void your protection.
FAQ Section
Does my umbrella policy cover parades?
Yes, if the underlying auto policy covers it. If the auto policy denies the claim (due to business use), the umbrella usually denies it too.
What if I throw candy and hit someone?
That is a liability claim. “Bodily Injury.” It is covered, but throwing objects from a vehicle is risky.
Are “Cruises” covered?
Yes. A “Cruise Night” is standard hobby use.