3 Things You Should Know About Commercial Trailer Insurance

Commercial Trailer Insurance

The trucking business is a lucrative and essential business in our world today. Now more than ever people rely on the trucking industry to bring them the goods they’ve ordered.

The commercial truck business also carries a whale of liability. So many things can go wrong when you put a big truck with a big trailer behind it on the road. If you own a trucking business, you need truck trailer insurance to keep your business safe. 

Keep reading to learn three major things you should know about tractor truck trailer insurance.

You Need To Have Truck Trailer Insurance

What is commercial insurance, you may wonder?

If you’ve owned a private utility trailer, you most likely haven’t had to have separate insurance for the trailer. When you have a utility trailer and use it for a non-business purpose, your personal auto policy covers it. However, if you’re using a utility trailer for business purposes, you need a commercial auto insurance policy. 

The commercial policy covers the vehicle towing the trailer, and the coverage then extends from the vehicle to the trailer.  

Legally speaking, you must have commercial truck insurance when you’re running a business using a utility trailer. Your need for trailer insurance qualifies even if you’re trading trailers. If you’re hauling someone else’s trailer, you will need trailer interchange insurance. 

Trailer interchange insurance covers the trailer when you transfer trailers between truckers. Whoever possesses the trailer has the responsibility for any damages that occur. Anyone who operates under the trailer interchange agreement needs this specific coverage. 

Basic Insurance Is Just Liability

Your basic commercial insurance will cover just liability. This means if your truck is in an accident or injures someone, your insurance will cover the damages. The coverage will pay out for any victim’s pain, suffering, and medical bills.

 Trailer Insurance

Basic liability insurance also covers your legal defense should someone decide to sue you. The insurance can go under several names like utility trailer insurance, dump trailer insurance, and cargo trailer insurance. Your insurance agent or broker will know the right insurance you need. 

Location Matters

Insurance regulations depend on your location, so know the laws of the states where you’re located and where you’re operating. If you cross state lines, know the laws. 

For example, if you use your commercial utility trailer on state roads, most states require you to register and license the trailer. Registration requires proof of insurance in most cases.

Also, in some areas, if you want your trailer registered, the trailer must pass safety inspections. These inspections are usually required for commercial trailers. If you’re used to operating a non-commercial utility trailer, then you are often exempt from these inspections. 

Also, if you’re transporting valuable cargo, you should consider tacking cargo insurance onto your regular insurance policy. This would protect your cargo should it sustain damage during transport.

Cover Your Tail

If you own a trucking business, you need truck trailer insurance. Cover your trailer and your tail by having the right policy. 

If you’re looking for some truck insurance online, contact us for a quote today. We’d love to help you out.

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