Holiday Trailers vs. Commercial Trailers
Holiday Trailers: These are the recreational trailers you take on vacations, like campers or fifth-wheels. They’re used for personal enjoyment, and generally not for business activities.
Commercial Trailers: On the other hand, commercial trailers are used for work purposes, such as hauling equipment or products for your business.
The key difference here is usage. Insuring a trailer used for leisure is not the same as insuring one that helps run your business. That’s why it’s important to let us know how you use your trailer so we can ensure your coverage matches your needs.
Liability vs. Physical Damage Coverage
Liability Coverage: This protects you if your trailer causes damage or injury to someone else. For example, if your trailer comes loose and damages another vehicle or property, liability coverage will help cover those costs.
Why it’s important: Without liability coverage, you could be on the hook for significant repair or medical bills if your trailer causes an accident.
Physical Damage Coverage: This covers the trailer itself in the event of an accident, theft, or natural disaster. Whether it‘s a hailstorm or a collision, this type of coverage ensures that you won‘t have to pay for expensive repairs or replacements out of pocket.
Why it’s important: Trailers are significant investments. For commercial trailers, a breakdown can also mean lost business or income. Having this coverage ensures your assets are protected.
THE MAIN THING – Nothing is automatically covered or insured. Commercial clients need to add liability for owned or non-owned trailers to your commercial auto policy and physical damage coverage. Personal clients need to advise if they wish to have physical damage coverage for their trailer. Liability is extended from the towing vehicle for personal use only.
Why You Need Both Coverages
Both liability and physical damage coverage provide essential protections for trailer owners. Liability coverage shields you from third-party claims, while physical damage coverage protects your own property. Together, they offer peace of mind, whether you’re towing your trailer for a weekend getaway or using it to transport work equipment.
We understand that trailers come in all shapes, sizes, and uses. Whether you’re unsure about your current policy or need a new one tailored to your specific needs, we‘re here to help. Give us a call today to review your trailer insurance and ensure you’re fully covered.
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