What is Commercial Utility Towing Insurance?
Commercial utility trailer insurance is specialized coverage specifically designed for businesses to protect their commercial utility trailers against unexpected events. This type of insurance ensures that if your commercial utility trailer is damaged, lost, or responsible for injury or property damage, you will receive compensation. Unlike personal tool towing insurance, commercial utility towing insurance provides a more comprehensive range of coverage options. You should consider obtaining this insurance if you are making money through utility trailer rental, selling utility trailers, or using utility trailers to transport customer cargo.
There are various commercial insurance policies available for commercial equipment trailer insurance. The most common business insurance policies you can choose from include general liability insurance, product liability insurance, commercial property insurance, workers’ compensation insurance, and trailer swap insurance.
Commercial Utility Trailer General Liability Insurance
The primary coverage included in commercial utility towing insurance is liability insurance. This coverage provides financial protection if you, as the trailer owner, cause an accident or harm someone. It covers the victim’s medical bills and additional costs resulting from the accident. Additionally, the policy covers any legal expenses in case of a lawsuit.
You can enhance your general liability insurance by adding additional coverage options. These may include advertising injury coverage, which protects you against copyright infringement, defamation, and similar claims, as well as liability coverage for leased premises, which reimburses your landlord for damages to the rented space.
The general liability insurance for utility towing companies typically offers a coverage limit ranging from $1 million to $3 million per occurrence, with a total coverage amount of $3 million to $4 million.
Professional Liability Insurance for Commercial Utility Trailers
If you use a utility trailer to transport cargo, you can add professional liability insurance to your commercial utility trailer insurance policy. This coverage pays for indemnity and defense costs if clients sue for negligence related to lost or delayed deliveries.
Professional liability insurance provides a limit of $1 million per occurrence, with a total coverage amount of $2 million. Some insurance companies offer the option of purchasing professional liability insurance as a casualty or casualty policy. Comprehensive professional liability insurance covers incidents regardless of when they are reported, while claims professional liability insurance only covers incidents reported at the time they occur. It is recommended to have both general liability insurance and professional liability insurance for comprehensive protection against third-party liability claims.
Commercial Utility Trailer Product Liability Insurance
Product liability insurance is particularly useful for those who rent utility trailers. It provides coverage if a renter sues you for property damage or injuries caused by the utility trailer. This type of insurance covers attorney fees, settlements, administrative costs, and other expenses related to the claim.
Product liability insurance is available as a separate policy, but many insurance companies encourage adding it as an optional addition to general liability insurance. The policy limits for product liability insurance range from $1 million to $2 million, with a total coverage amount of $2 million.
Commercial Property Insurance for Commercial Utility Trailers
Commercial property insurance protects your utility trailer business building and the utility trailers you own. It also covers other business properties such as computers and generators. The primary purpose of commercial property insurance is to reimburse losses in case of damage or destruction of your business building due to various perils, including fire, theft, vandalism, and natural disasters.
Commercial property insurance also offers contents coverage, which covers losses if utility trailers and other business equipment are damaged or destroyed while on your business premises. You can also add equipment breakdown coverage to your commercial property insurance policy to provide reimbursement for damages caused by operator error, electrical overload, flood damage, mechanical breakdown, and other covered perils.
The coverage amount for commercial property insurance for utility trailer businesses ranges from $15,000 to $25,000 for business property damage or loss. However, some providers offer coverage up to $500,000. You can choose between comprehensive commercial property insurance, which covers all perils, or named perils insurance, which only covers specific perils.
Workers’ Compensation Insurance for Commercial Trailers
If your utility trailer business employs people, it is essential to consider obtaining workers’ compensation insurance. This insurance covers the costs associated with work-related injuries or illnesses suffered by your employees. It includes coverage for ambulance and emergency treatment, hospital stays, medications, rehabilitation, lost wages, and funeral expenses. However, workers’ compensation insurance only applies to full-time or part-time employees and does not cover individuals not on your company’s payroll.
To estimate the cost of workers’ compensation insurance, calculate your company’s average payroll, divide it by 100, and multiply the result by the insurance company’s workers’ compensation rate.
Trailer Trade-In Insurance for Commercial Utility Trailers
If you frequently borrow or rent utility trailers, consider obtaining trailer trade-in insurance. This coverage applies to trailers you borrow or lease under a trade-in agreement. If these trailers are lost or destroyed due to theft, breakdowns, or other covered perils, trailer trade-in insurance will reimburse the owner on your behalf.
Commercial Utility Trailer Cargo Insurance
Cargo insurance provides reimbursement to owners in case the cargo being transported via your trailer is lost or damaged due to accidents, employee errors, theft, natural disasters, and other covered perils.
Emergency Roadside Assistance for Commercial Utility Trailers
Insurance companies also offer emergency roadside assistance for utility towing companies. This coverage provides reimbursement for transportation costs if your utility trailer breaks down and needs to be transported or towed. It also includes reimbursement for tire replacement and roadside repair services.
Do You Still Need Commercial Utility Towing Insurance with Commercial Auto Insurance?
Even if you already have commercial auto insurance, it is essential to purchase separate insurance for your utility trailer that is attached to your primary motor vehicle. Most insurance providers require separate insurance coverage for utility trailers, in addition to your primary commercial auto insurance.
Furthermore, if you use your utility trailer for non-business purposes, it may be covered by a personal auto policy. However, once you utilize the utility trailer for business purposes, you will need to obtain commercial auto insurance and utility trailer insurance.