Enclosed Cargo Trailer Insurance: Cost & Quotes from $11

Consider insuring your enclosed cargo trailer just like what you would do if you own a tractor trailer.An enclosed trailer can be used to haul work equipment, recreation and sporting equipment, or building materials. Heck if spacious enough, you can even use this as a makeshift horse trailer. The thing is regardless of what you are hauling, you want to safeguard your enclosed cargo trailer and the goods therein.

If you already have auto insurance on the motor vehicle, you might be tempted to believe that it will be sufficient to cover the trailer. In fact, the insurance on the motor vehicle will not cover the enclosed cargo trailer in the event that it is stolen, vandalized, or damaged in an accident.

Seeing as you are going to need a separate insurance policy in the event of physical damage to the enclosed cargo trailer, consider investing in cargo trailer insurance. Here’s a breakdown of the common types of enclosed cargo trailer insurance.

Cargo Trailer Liability Insurance

Chances are, you are wondering whether it is compulsory to purchase commercial cargo trailer insurance. 

Most states make it mandatory to at least have a minimum of liability coverage for the cargo trailer. It’s because the pulling vehicle’s commercial auto liability coverage can cover the cargo trailer but not comprehensively.

If you don’t have the minimum liability coverage for your cargo trailer, you risk hefty fines, having your license revoked, or face imprisonment.

So how much is the minimum liability coverage for your cargo trailer? This depends on the state where you’re located. 

Enclosed Trailer Cargo Insurance

Cargo insurance is a legal requirement if you’re using a cargo trailer to transport or haul household goods and materials for people. 

This insurance will kick in if the goods and materials you’re hauling become damaged or lost during the trip due to theft, vehicular accidents, rollover, jettison, or negligence. 

Cargo insurance provides a $5,000 minimum coverage. Majority of insurance companies sell cargo insurance with a $5,000-$25,000 limit. A few allow you to customize and make it possible for cargo insurance to offer $100,000 coverage. 

Comprehensive and Collision Coverage for Enclosed Trailers 

Don’t think twice about getting comprehensive and collision coverage for your cargo trailer. The latter protects your enclosed cargo trailer from incidents such as theft, vandalism, and weather-related damage.

On the other hand, the former protects your cargo trailer against damage caused by crashing into an object, a vehicle, or another cargo trailer.  

Comprehensive and collision coverage that's part of the insurance for enclosed trailer pays for all repairs or replacements to the cargo trailer. 

So how much money can you get from comprehensive and collision insurance on enclosed trailer? This depends on the insurance company you work with. Some insurance companies provide $2,500-5,000, while there are others willing to give much more. 

Emergency Expense Coverage for Cargo Trailers

As an industry standard, most of the current box trailer insurance providers will offer emergency expense coverage. You will be provided with a stipend for transportation and lodging if the enclosed cargo trailer is disabled at a specific distance during a trip. Emergency repairs may or may not be included in the policy’s terms. 

Theft Insurance for Cargo Trailers 

Theft insurance covers costs if your cargo trailer is damaged or lost due to theft. This insurance provides $3,000-$5,000 coverage for repair expenses. If ever you didn’t manage to recover your cargo trailer after it got stolen, theft insurance will refund the value of the cargo trailer or provide a new replacement unit. 

Emergency Roadside Assistance for Cargo Trailers

Emergency roadside assistance also kicks in when your cargo trailer sustains defects at a specific distance during the trip. This insurance provides $1,500-$2,500 insurance money you can use to cover the following costs:

• Towing services

• Tire delivery and replacement

• Hauling services 

Cargo Trailer Personal Effects Coverage 

Are work equipment and other personal belongings inside the cargo trailer? If this is the case consider adding personal effects coverage to your cargo trailer insurance. Personal effects coverage will reimburse losses if your items inside the cargo trailer become damaged or lost due to theft, fire, and collisions. 

Consider Getting These Business Insurance Policies If You’re Using A Cargo Trailer Commercially

The following are other insurance policies you must purchase when using a cargo trailer commercially. 

General Liability Insurance for Cargo Trailer

Your general liability policy can cover costs if your cargo trailer causes property damage or injuries while being stationary. For example, if the cargo trailer is carrying flammable objects and then explodes, general liability insurance can cover the claims of affected parties. 

General liability insurance will cover the medical treatment or funeral of the person who got injured due to your cargo trailer. As for those whose properties got damaged, general liability insurance will refund their loss. 

In case you need money for legal defense, general liability insurance got your back because it will pay for attorney fees, judgments, etc. 

You can add advertising injury coverage to general liability insurance. This will cover costs if a claim is filed for slander, libel, and copyright infringement.

Non-owned/hired auto liability coverage is another optional inclusion to general liability insurance. This can cover attorney fees, settlements, administrative costs, and other related expenses if a cargo trailer you rented or borrowed caused injuries or property damage. 

So how much money can you get from general liability insurance? General liability insurance has a $1 million-$2 million per occurrence limit with a $2 million-$3 million aggregate. 

Product Liability Insurance for Cargo Trailers 

Do you rent or lease your cargo trailer? If this is the case, consider purchasing product liability insurance. Product liability insurance will take care of expenses if the cargo trailer causes injuries or property damage to the renter while it’s being used. 

Product liability insurance is available as a stand-alone policy or as an optional coverage to general liability insurance. This has a $2 million per occurrence limit with a $2 million aggregate. 

Trailer Interchange Insurance for Cargo Trailers

Trailer interchange insurance is useful if you borrow or hire cargo trailers under a trailer interchange agreement. 

In a trailer interchange agreement, any damage or destruction of a hired or borrowed cargo trailer is on your shoulders. The job of trailer interchange insurance is to cover costs on your behalf.

When a hired or borrowed cargo trailer becomes lost or damaged, trailer interchange insurance will cover repair costs or refund the losses of the owner.  This policy provides you with $20,000-$30,000 coverage. 

Commercial Property Insurance for Cargo Trailers 

Commercial property insurance is a coverage for your cargo trailers and other business property such as the storage building where the cargo trailers are kept and the equipment used to maintain them. 

You can use commercial property insurance to recover losses if any of the following perils cause the damage or destruction of your cargo trailers’ storage building:

• Fire

• Theft

• Vandalism

• Riot

• Civil commotion

• Sinkhole collapse

• Volcanic action

• Sprinkler leakage

• Vehicle

• Aircraft

• Explosion

Commercial property insurance has business equipment coverage. With business equipment coverage, your cargo trailers as well as the equipment used to maintain them are protected against the exposures we mentioned above. 

Workers Compensation Insurance for Cargo Trailer Operators 

Workers' compensation insurance can cover costs if you or an employee sustains injuries while using a cargo trailer for commercial purposes. Note that this insurance is a legal requirement except in Texas. 

So what costs does workers' compensation insurance cover? This insurance allows you to cover the following:

• Medical treatment/ambulance-Workers compensation insurance covers medical treatment and ambulance fees if you or an employee sustains injuries while using a cargo trailer to generate money

• Hospitalization-Insurance companies allow you to use their worker's compensation insurance to cover hospital bills 

• Medication-Workers compensation insurance provides the funds you or an employee can use to buy medicines for a work-related injury

• Lost wages-Workers compensation insurance covers lost wages. Coverage for lost wages is a weekly allowance equal to two-thirds or 67% of the average weekly wage 

• Death benefits-Workers compensation insurance covers funeral expenses and provides financial assistance to a deceased’s dependents

Workers' compensation insurance can only cover you or employees. It doesn’t cover the injuries of third parties who got hurt by your cargo trailer. 

Does Your Cargo Trailer Need an MCS90 Endorsement?

Your cargo trailer can make use of an MCS90 endorsement if the vehicle pulling it doesn’t have one and if the cargo trailer is used to move cargo. 

An MCS90 isn’t an insurance on cargo trailer. This is a document that can be attached to your cargo trailer insurance and proves that you have the minimum liability coverage limits in case the cargo trailer causes injuries or property damage to third parties. 

Also, in case you don’t have the minimum coverage limits, an MCS90 endorsement can compel an insurance company to indemnify affected parties on your behalf. But note that the insurance company can ask you to reimburse what they spent. 

Enclosed Trailer Insurance Cost

Right out of the gate, it is important to point out that the operation of commercial enclosed trailers is high stake. As such, you must expect enclosed trailer insurance cost to be generally higher than the premiums you would have otherwise paid for utility trailer insurance. 

The cargo trailer insurance cost you incur will be dependent on a couple of factors. But on average, expect to pay $35 per month or $420 per year for a $1 million liability coverage. In addition, here’s a table showing the rates of the best cargo trailer insurance companies:

Often, enclosed trailer insurance providers require that you provide pertinent information on your business beforehand. As such, you want to be conversant with how often you use the trailer and its capacity. Further, depending on your business needs, you might require extra protection. For instance, if you require your policy to include a clause on replacement, this will obviously attract a higher cost. 

An additional determinant of the cargo trailer insurance cost is the make and model of your trailer. If your cargo trailer attracts high market value and is more costly to repair or replace, expect higher premiums. 

Note that the more you are willing to pay out of pocket in the event of a claim, the more likely your insurance rates will be favorable. 

Basically, if you increase your deductibles, you will get cheap cargo trailer insurance quotes. We advise you to compare box trailer insurance quote online. Start by clicking the “Get Quotes” button on this page. 

How To Get Cheap Enclosed Trailer Insurance?

Fortunately, you have some control over the insurance rates that you will end up being charged. Some of the tips that will ensure you get a competitive quote include:

• Safely storing the enclosed cargo trailer within a secure facility when it is not in use

• Determining the how and the when of when you use the cargo trailer. If you don’t use the cargo trailer frequently, you will be able to pay significantly lower premiums

• Deductibles can change your rates. Consider increasing your deductibles should help reduce your enclosed cargo trailer insurance premiums