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It depends, if you want the dolly covered for damage to it, yes add it to you auto or RV policy. If you're not concerned about the dolly then you do not have to add it or notify your insurance, anything you tow is covered for liability (damage done by your towed vehicle) by the towing vehicle. In short, liability extends to whatever you connect to you vehicle. the vehicle being towed will be covered for damages to it from it's policy so if ou have "full coverage" it's covered but there will be a separate deductible if both the RV and auto are damaged (in most cases). I hope this helps
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