Is It Good To Put My Business Vehicles In A Series LLC?

Starting and running a construction business in Texas has been a challenge the last few years. Everyone sees the people moving in and the homes and buildings being built, but they don't see the long hours and sweat that goes into the day to day.

James has run a construction business just outside of Austin for almost a decade. He was growing faster as of late and had ten work trucks, three trailers, and a growing crew. His attorney suggested creating a Series LLC to better protect his assets. One for each vehicle, all under one master company.

The idea sounded smart. If one truck got in a wreck, maybe the others would be shielded. It felt like he was leveling up his business and managing the future through liability protections.

But after the Series LLC structure went into effect, James called our insurance office to discuss his series agreement and what changes needed to be done with his commercial auto insurance policy.

These changes to his limited liability company's auto policy ended up being substantial. His annual commercial auto premiums jumped from $40,000 to nearly $90,000.

Turns out, what his attorney didn’t understand or explain was how this move would affect his biggest lability shield, his commercial auto policy. By splitting up ownership of each vehicle across separate series, he triggered a domino effect of changes to his asset protection.

Three Things To Know About Insurance & Series LLCs

1. Commercial Auto Insurance Hates The Series LLC Setup
2. Your Real World Example
3. When Does A Series LLC Make Sense?

If you want to see the FAQs, they are at the bottom of the page. Now back to James' story.

Why More Texas Businesses Are Using Series LLCs

Across Texas, more business owners are hearing about Series LLCs. Especially from their attorneys.

This structure creates one Master LLC, with multiple “series” limited liability corporations underneath it. Each member of the series agreements can hold its own assets, take on the series liabilities, and operate like its own entity, all under one parent.

For real estate investors, this can make a ton of sense. You can keep properties siloed, reduce legal risk, and maintain administrative simplicity with just one Master Series Limited Liability Company.

But here’s where it gets tricky.

What makes sense from a legal liability management standpoint can fall apart when it hits the insurance world. Especially when commercial vehicles or other depreciating assets are involved.

Why Commercial Auto Insurance Hates the Series LLC Setup

From a legal point of view, splitting up ownership across series can create stronger liability shields.

But commercial auto insurance carriers don’t work off legal theory. They underwrite based on ownership, usage, and risk profiles.

So when you move each truck into its own series entity, you’re essentially telling the insurance company:

“These are now separate businesses. They each need their own policy.”

That one sentence changes everything.

Here’s what you lose when that happens:

• Fleet pricing goes out the window. No more bundled quotes. Each vehicle is now on its own island.
• Multi-vehicle discounts vanish. Insurance companies don’t reward fragmentation.
• You lose shared liability limits. Instead of pooling risk under one roof, every series now has to carry its own limits of liability if there is an accident.
• Paperwork multiplies. Each vehicle now needs its own declarations page, certificates of insurance, ID cards, and renewal schedule.
• You increase the chance of a mistake. One missed renewal or lapse and you’ve got a problem nobody wants to deal with.

That’s a whole lot of cost and complexity just to say “we put each truck in its own series.”

Real-World Example: One Change, $50,000 More Per Year

In James’s case, his attorney meant well. The logic behind isolating liability through asset segregation is great.

But insurance companies don’t price risk that way. Instead of ten trucks on one fleet policy, James had to insure each one separately, with its own premium, liability limits, and underwriting process.

Had James kept ownership of the vehicles under one entity and layered a well-structured umbrella policy over the top, he would have had:

• Broader protection. One umbrella covering the entire operation, not just one vehicle at a time.
• Lower premiums. Umbrella policies are designed to stack protection affordably, not double your base cost.
• Easier claims. One adjuster. One policy. Enough said.
• Far less administrative burden. One bill. One renewal date. One set of paperwork.

Bottom line? He could’ve saved over $50,000 a year and still gotten more coverage for each vehicle. That’s the kind of math that makes a business owner want to throw a wrench across the shop.

So When Does a Series LLC Make Sense?

This structure isn’t all bad. It can be incredibly useful in the right situations. But it’s not a one-size-fits-everything approach.

Here’s where a Series LLC shines.

• Real estate holdings. Especially if the assets are appreciating and you want to shield each one from the others.
• Intellectual property protection. Like trademarks, branding, or product lines.
• Multiple business entities. Say you own a coffee shop, a consulting business, and a short-term rental portfolio. Different revenue streams, different risk profiles, all under one parent.

Now let’s talk about where it’s usually a mistake.

Series LLCs are a pain when applied to:

• Commercial vehicles. While they’re exposed to the public, purchasing power for liability protections is exponential.
• Work trailers, service vans, and mobile equipment. Same problem as your commercial vehicles. You need flexibility, not fragmentation.
• Anything that requires group coverage or bulk pricing. If an asset works better in a bundle, it probably doesn’t belong in a series.

If the thing you’re protecting drops in value, breaks down, or needs to be replaced every few years, a Series LLC is probably doing more harm than good.

A Smarter Way to Protect Your Business and Lower Your Costs

If your attorney is suggesting a Series LLC, don’t say no. Just pause and call your experienced insurance advisor first.

The best move is understanding all parameters. It's the one that gives you real protection when something goes wrong, without doubling your premiums or complicating how your coverage is applied.

And when you’re dealing with vehicles, liability claims, and big-dollar risks, your insurance setup has to work in the real world, not just with the Texas Secretary of State.

Before You File That New Operating Agreement

Let’s look at the full picture.

Schedule a personalized risk assessment with our team at Insurance For Texans. We’ll walk through your structure, your coverage, and how to protect your business without creating unnecessary costs or complexity. We will also do it in conjunction with your corporate or real estate attorney.

Click below to get clarity before you make a six-figure insurance mistake.