Accidents involving trailers while being towed by another vehicle are quite common and they cause extensive property damage and injuries when they collide with another vehicle or object. In such circumstances, the vehicle covered by business auto insurance protects the trailers too, but not in every situation/accident. Whether or not the insurance fully covers the trailers and resulting losses depends on the liability coverage limit of your policy and the weight of the trailer.
Let us discuss the basics of business auto insurance and when it will extend to covering a towing trailer.
What Does Business Auto Insurance Cover?
Business auto insurance covers at-fault accidents involving your company-owned vehicles used for business purposes. It protects you against:
- Third-party bodily injury and property damage (liability coverage)
- Medical expenses incurred from an accident caused by a hit-and-run driver
- Accidents caused by an object or another vehicle (collision and comprehensive coverages)
- Damages to your vehicle caused by theft, vandalism, fire, flood, etc.
When Are Towing Trailers Covered by Commercial Auto Insurance?
Trailers lower than 2,000 pounds gross weight will be automatically covered by the liability portion of the business auto insurance. However, if your trailer weighs 2,000 pounds or more, you need to add physical damage coverage to the trailer on your policy or you can buy separate trailer liability insurance.
What Does Not Business Auto Insurance Cover?
Business auto insurance does not cover:
- Expected or intentional property damage and bodily injuries
- Incidents related to work or fall under workers’ compensation insurance
- Accidents involving vehicles that are non-owned, hired, rented, borrowed, or belong to your employees
- Incidents involving equipment like cranes or forklifts
Nevertheless, business auto insurance will cover the replacement vehicle if your covered vehicle is being repaired or serviced. The coverage for these vehicles can also be added to the general liability or business owner’s policy.
How Much Does It Cost to Buy Business Auto Insurance?
The cost of business auto insurance is not standard, and it varies depending on:
- Your vehicle type
- How it is used
- The driving records of drivers operating it
- Industry or driving-specific risk factors
However, generally, the annual cost of insuring vehicles is:
- Smaller vehicles for consultant/commuter use may cost $600 to $1500
- Vehicle for hire-trucking may cost $5000 to $15000
- Livery vehicle may cost $2,000 to $6,0000
How to Get the Best Business Auto Insurance Policy?
Now, most insurance companies offer services online and provide quotes almost instantly. So, you can get quotes from multiple providers and compare the price against the coverages offered for commercial auto insurance. This will help you find a provider that offers the best policy tailored to your needs and budget.
Need Help Finding the Right Business Auto Insurance? Contact J. Archer Insurance!
At J. Archer Insurance Group, we offer all-inclusive business auto insurance to protect your commercial vehicles at all times against every possible risk. Whether you want a basic commercial auto policy or a customized one with extensive coverage, contact our insurance professionals today. We look forward to helping you find the policy that is right for you and your business vehicle.