Insuring Trailers and Their Cargo on Commercial Auto Policies
by Kyle Zehr, CIC, CWCA, Commercial Lines Manager

Insuring trailers on a commercial auto policy often presents questions as to whether or not coverage is automatically provided. When reviewing your insurance coverage, your policy will consider the trailer weight, the determining factor in liability coverage, and the option of physical damage coverage.

List Trailers On Your Policy
There are two categories of trailers, those with a gross vehicle weight (GVW) under 1,999 pounds, and those over 1,999 pounds. Trailers less than 1,999 GVW are automatically provided liability coverage on the auto policy by the vehicle pulling the trailer. However, if physical damage coverage is desired, the trailer must be scheduled on the commercial auto policy. Trailers 1,999 GVW and over, must be scheduled on the policy to provide liability coverage. If physical damage coverage is desired it must also be selected on the policy.

Liability concerns for trailers occur if it becomes unattached from the vehicle pulling it, causing damage to other vehicles or property. Liability coverage also applies when a trailer is unattached to a vehicle.

Get a Separate Policy for Cargo
Commercial auto polices do not provide coverage for cargo of any kind that is in a vehicle or on a trailer being pulled by a vehicle. Cargo such as equipment, tools, machinery, as well as other products, need insurance under a separate inland marine policy to provide coverage during transportation. There are several options and types of inland marine polices that will provide the proper coverage for whatever type of cargo needs to be insured.

To ensure that your trailers and their contents are properly insured, please contact our staff at 267-384-5300. They will be happy to review the available coverage options.

FIFS Connection, Summer 2006, Vol.3, No. 3