Utility trailers provide unparalleled performance and are integral in commercial trucking just like enclosed trailers. Businesses leverage these commercial utility trailers to haul equipment and machinery as well as transport goods and supplies to destinations. Similar to horse trailers, authorities will require you to insure and register big utility trailers (small ones can be operated without these by the way). While each state will have various insurance requirements, a standard requirement is purchasing utility trailer insurance.
Commercial utility trailer insurance is a specialty cover taken out by businesses as a protection from unexpected events involving their commercial utility trailers. When you purchase said insurance on a utility trailer, you are assured of compensation in the event that the commercial utility trailer is damaged, lost, or is liable for the injuries and property damage of others.
Unlike a personal tool trailer insurance, commercial utility trailer insurance is more comprehensive as it offers different kinds of business insurance policies. Consider getting this if you’re making money by:
Renting out utility trailers
Selling utility trailers
Using a utility trailer to transport the cargo of clients
The features of commercial equipment trailer insurance differ from one carrier to the next. Nonetheless, these are the most common business insurance policies you can avail:
General liability insurance
Product liability insurance
Commercial property insurance
Workers compensation insurance
Trailer interchange insurance
The primary coverage that's part of the commercial utility trailer insurance is liability insurance. This liability coverage provides financial protection in the event that, as the owner of the trailer, you cause any accident or injure anyone. The coverage pays the victim's medical bills as well as any other additional costs that are as a result of the accident. Further, the policy will pay for any legal defense in the event that you end up haggled in a lawsuit.
You can get more protection from general liability insurance by including additional coverages to its terms. These are:
Advertising injury coverage-With advertising injury coverage, general liability insurance will cover settlements, attorney fees, administrative costs, judgments, and other related expenses if your utility trailer business is sued for copyright infringement, slander, or libel
Rented premises liability coverage-You can add this to general liability insurance if you’re renting a space for your utility trailer business. When the rented space is damaged, rented premises liability coverage will reimburse the owner
For utility trailer businesses, general liability insurance provides a $1 million-$3 million per occurrence limit with an aggregate of $3 million-$4 million.
A professional liability policy can be added to commercial utility trailer insurance if you’re using a utility trailer to transport cargo.
Professional liability insurance will pay for indemnification and defense costs if clients sue for negligence because of:
Lost cargo
Missed or delayed delivery
Insurance companies allow utility trailer businesses to get a professional liability insurance that offers a $1 million per occurrence limit with an aggregate of $2 million.
Some insurance companies give you the option of buying professional liability insurance as an occurrence or claims-made policy.
Occurrence professional liability insurance provides protection regardless of when you decide to report a covered peril. On the other hand, claims-made professional liability insurance only provides protection if you report a covered peril at the time it happened.
Many experts treat general liability and professional liability insurance as complementary policies, which means that one caters to the gaps of the other.
We recommend you get professional liability and general liability insurance. By having both, you get a comprehensive protection against third party liability claims.
Product liability insurance is useful if you’re renting utility trailers. This kicks in when a renter sues for property damage or injuries caused by your utility trailer.
Similar to general liability insurance, product liability insurance also covers attorney fees, settlements, administrative costs, and other related expenses.
Product liability insurance is available as a stand-alone policy. However, the majority of insurance companies encourage you to get this as an optional inclusion to general liability insurance.
So how much money can you get from product liability insurance? The limits of the policy are $1 million-$2 million with an aggregate of $2 million.
Commercial property insurance is a protection for your utility trailer business’s building as well as the utility trailers that it owns. This will also cover other business properties such as computers, generators, etc.
The primary function of commercial property insurance is to recover losses if your utility trailer business’s building is damaged or destroyed by:
Fire
Theft
Vandalism
Malicious mischief
Sinkhole collapse
Volcanic action
Hail
Snow
Winds
Aircraft
Vehicle
Impact
Sprinkler leakage
Commercial property insurance has contents coverage. With contents coverage, the policy can cover losses if any of the perils in the bullet above cause the damage or destruction of utility trailers and other business equipment while they’re in the premises of your business.
Equipment breakdown coverage can be added to the terms of commercial property insurance. By having this, commercial property insurance will provide reimbursements if your utility trailers and other business equipment sustained damage due to:
Operator error
Electrical surge
Flood damage
Impact
Mechanical breakdown
For utility trailer businesses, commercial property insurance provides a $15,000-$25,000 coverage for business property damage or loss. This is just the minimum though. That said, it’s possible for you to find a carrier providing up to $500,000 coverage.
Note that some carriers allow you to get commercial property insurance as an all-risk policy or named perils policy. An all-risk commercial property insurance covers all of the exposures we mentioned. Its named perils counterpart, on the other hand, only covers perils named on its terms.
Your utility trailer business will employ people. After all, you need someone to maintain the utility trailers, manage finances, and cater to customer requests. Workers can ask you to provide compensation if ever they sustain a work-related injury.
To satisfy this responsibility without compromising your business’s finances, consider getting workers' compensation insurance. Workers' compensation insurance will cover the following costs:
Ambulance and emergency treatment-Your utility trailer business can use workers' compensation insurance to cover ambulance and emergency treatment fees if an employee experiences a work-related injury or disease
Hospitalization-Workers compensation insurance allows your utility trailer business to cover bills on an employee’s behalf if he or she needs to remain in the hospital for days, weeks, or months
Medication-The worker's compensation insurance of your utility trailer business provides the money which can be used for buying prescription medicines
Rehabilitation-Workers compensation insurance will cover therapist fees, retraining, and other rehabilitation expenses if the employee of your utility trailer business experiences an impairment after sustaining a work-related injury or disease
Lost wages-Your employee can recover lost wages through workers' compensation insurance if he or she can’t work due to a work-related injury or disease. This comes in the form of a weekly allowance equal to two-thirds or 67% of the average weekly wage
Funeral expenses-Workers compensation insurance covers funeral expenses if an employee of your utility trailer business dies due to a work-related injury or disease. It will also provide financial assistance to dependents
Remember that your utility trailer business can only use workers' compensation insurance to cover the injuries or diseases of a full-time or part-time employee. Anyone working under you who aren’t necessarily part of your business’s payroll is excluded.
It’s easy to estimate how much you’ll pay for workers' compensation insurance. All you have to do is figure out your business’s average payroll, divide it by 100, then multiply the quotient by the worker's comp rate of the insurance company.
You might need to borrow or rent a trailer. And so, it’s smart to get trailer interchange insurance. Trailer interchange insurance is a coverage for trailers you borrow or rent under a trailer interchange agreement. If they become lost or destroyed due to theft, breakdown, and other covered perils, trailer interchange insurance will reimburse the owner on your behalf.
Cargo insurance will allow you to reimburse the owners if the cargo being transported through your trailer becomes lost or damaged due to a vehicular accident, employee error, theft, lightning, jettison, and other covered perils.
Insurance companies also underwrite emergency roadside assistance for utility trailer businesses. This will provide a $750 reimbursement for transportation expenditures if your utility trailer breaks down and needs to be hauled or towed. You also get a $500-$1,000 refund for tire replacement and roadside repair services.
It is prudent to mention that while you might have already had auto insurance, you will still be required to purchase insurance for a utility trailer attached to your primary motor vehicle. Most insurance providers insist on insuring a utility trailer separately from your primary commercial auto insurance.
An additional point to note is that if you were using the utility trailer for non-business purposes, you should be sufficiently covered by a personal auto policy. However, the moment you use the utility trailer for any commercial purposes, you will be required to get a commercial auto policy as well as utility trailer insurance.
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On average, a dual utility trailer will cost between $1,200 and $3,000, depending on size and weight capacity. A commercial-quality utility trailer will cost between $4,000 and $7,500. For most businesses, this will take a huge chunk of your budget. Fortunately, depending on your business model, you can rent out a utility trailer.
Renting a utility trailer saves you from the high initial cost while still ensuring that you have a utility trailer for all your business needs. Unfortunately, this model can end up being quite expensive in the long run, thus defeating its purpose.
Imagine a situation where the utility trailer is stolen or vandalized. Further, suppose the utility trailer is damaged, or you end up destroying another's property while in command of the utility trailer.
Without proper coverage, you will be required to pay for these costs out of pocket. This can be quite detrimental for your business seeing as you might need to take out your savings to pay for the costs.
That's where utility trailer rental insurance comes in. The insurance coverage starts by covering the cost of the actual renting. After that, every cost incurred while you are in possession of the utility trailer is covered by your rental policy.
Theft insurance for utility trailer will cover the repair costs in the event of theft. This policy can also replace your utility trailer if you can’t recover it after being stolen.
Utility trailer theft insurance is bought as a replacement cost or actual cash value policy. An actual cash value theft insurance will only reimburse your loss if the utility trailer gets damaged or lost due to theft. On the other hand, replacement cost theft coverage will reimburse and give you the chance to buy a new utility trailer.
The insurance rate for a utility trailer depends on multiple factors. The insurance agent from your insurance provider of choice will often review the make and model of the utility trailer, its annual mileage, and its primary use to determine your custom rates. The latter will also vary depending on the trailer's cargo weight and the type of materials hauled.
The average utility trailer insurance cost is $800 per year or $66.67 per month for a $1 million liability coverage. The disparity with this figure is likely since trailers are relatively confusing to insure. This is because these utility trailers come in all shapes and sizes.
Take a look at this table that shows the rates of the best utility trailer insurance companies:
| Cost per Month | Cost per Year | Best for | |
|---|---|---|---|
| CoverWallet | $25.67 | $308.04 | Utility trailer insurance quotes comparison online |
| NEXT | $27.88 | $334.56 | Fast general liability insurance; Utility trailer rental or leasing businesses |
| Tivly | $27.88 | $334.56 | Comparing utility trailer insurance quotes over the phone |
| Thimble | $31 | $372 | Utility trailer insurance with quick refunds |
| Progressive | $33.83 | $406 | Utility trailer insurance with discounts and add-ons |
| State Farm | $34.75 | $417 | Customers seeking to connect with local representatives |
| USAA | $35.50 | $426 | Customers affiliated with the U.S military |
| Allstate | $47.08 | $565 | Numerous discounts |
| Geico | $97.33 | $1,168 | Theft coverage for utility trailers |
There are a few ways to ensure you get cheap utility trailer insurance quotes. The first is to ensure that all drivers in charge of your utility trailer are above 25 years of age and that each of them has a valid driver's license.
You also want to ensure that your utility trailer is only used within what is considered safe locations or where fewer accidents have been reported. The idea is to find loopholes within your policy contract that would allow you to get a discount.
As you shop for the utility trailer insurance policy, we advise you to contact local independent insurance agents within your network. These independent agents provide you with all the information that you need to arrive at an estimated premium. Besides, they could come in handy when it comes to sourcing for utility trailer insurance quotes from several different reputable insurance companies.
Before contacting a provider, be sure to have information on your trailer type, its actual or estimated value of your trailer and how and when you intend to use it. This information helps you get a better picture of the costs that you expect to pay for utility trailer insurance.
Overall, regardless of the cost, you end up being charged, you want to remember that utility trailer insurance will protect what is likely a significant financial investment.
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Many own utility trailers today. The sheer breadth of this market segment has resulted in multiple utility trailer insurance providers entering the market. Here's a breakdown of the best utility trailer insurance companies. Read to know their pros, cons, and pricing for a $1 million general liability coverage.
Compare insurance quotes for your utility trailer online
Covers different kinds of utility trailer businesses
Online policy management
Cancel a policy anytime
Not an insurance company but an insurance broker
CoverWallet covers utility trailers used commercially through its commercial truck and trailer insurance program. Policy options are general liability and commercial auto insurance.
Note that this company has an online quotes comparison platform you can use to find other companies that sell tailored coverage for utility trailers.
Best for: Utility trailer insurance quotes comparison online
Average cost: $25.67 per month
Our rating: 10/10
Compare quotes over the phone
Coverage highly tailored to your needs
You need to call to get a quote
You need to call a representative of this company to know if your utility trailer can get covered. If it does, insurance policies you can avail for your utility trailer are equipment breakdown, liability, physical damage, and theft insurance.
If ever it can’t cover you, Tivly (formerly CommercialInsurance.NET) will take you to its partners who can provide coverage. Call Tivly now to compare quotes over the phone.
Best for: Comparing utility trailer insurance quotes over the phone
Average cost: $27.88 per month
Our rating: 10/10
Best overall
Issues an online proof of insurance you can easily show to anyone
Fastest GL online
Great customer service and reputation
Outstanding value for money
Bundle two or more policies and get a 10% discount
Doesn’t underwrite its own utility trailer insurance; only sells it
Only covers utility trailers for-rent or lease
NEXT provides coverage if you rent or lease utility trailers. Business insurance policies you can avail for your utility trailer business are general liability, commercial property, workers compensation, and more. Note that coverage for utility trailer rental or leasing businesses is offered in partnership with Tivly.
Best for: Fastest general liability insurance; Utility trailer rental or leasing businesses
Average cost: $27.88 per month
Our rating: 9/10
Fast online quotes
Responsive customer service
Cancel your policy and get a quick refund
Doesn’t sell trailer interchange insurance for utility trailers
Thimble sells equipment insurance in partnership with Tivly. You can get $2,500-$10,000 physical damage coverage. Theft coverage is capped at $3,000. Note that deductibles may apply.
Best for: Utility trailer insurance with quick refunds
Average cost: $31 per month
Our rating: 9/10
Utility trailers are towable by Geico
Second-lowest average rates as compared to the other utility trailer insurance companies on the list
Lowest rates for drivers with poor credit
Customers with previous speeding tickets might find a moderate break with Geico
Enhanced utility coverage is not available in Hawaii, Massachusetts, Michigan, and North Carolina
Customer service is lacking once you actually file a claim
Utility trailer insurance is not available in all states
The personal policy doesn't allow you to rent out your utility trailer
Geico is the country's second-largest insurance company. Its popularity is likely due to the low rates offered by the insurer and the idea that by buying utility trailer insurance from Geico, you will be saving a lot of money on auto insurance. The company, initially founded in 1936, Geico, was specifically created to provide auto insurance for federal employees and military members at a significantly reduced rate. Since then, Geico has expanded its customer base as well as the types of motor vehicles.
Geico utility trailer insurance coverage includes:
Total loss replacement
Replacement cost personal effects
Vacation liability
Recreational vehicle medical payment coverage
Special windshield deductible
Emergency expense coverage
Geico encourages customers to get in touch with them when it comes to the average cost of utility trailer insurance. A search online of Geico's average annual rate is $1,168. This value will be lower or higher depending on the specifics of your utility trailer.
Best for: Theft coverage for utility trailers
Average cost: $97.33 per month
Our rating: 9/10
Personalized service from over 19000 agents distributed nationwide
State Farm is the largest auto insurance provider in the United States
Prompt and reliable claim handling
Customers are eligible for 24/7 roadside assistance coverage
State Farm offers gap insurance
Some states aren't covered
Strict coverage limits
State Farm is a well-established insurer in the United States, offering its auto insurance policy in a total of 33 states. If you prefer the convenience of managing your insurance policy online, State Farm is your insurer.
You will pay $417 per year for minimum utility trailer insurance coverage. On the other hand, a full-coverage policy will cost you $1,045 per year. Some of the discounts you might get include:
Accident-free discount
Defensive driving discount for drivers that have a safety certificate
Bundle policies in that if you have several policies together
Discounts if you go three years or more without an at-fault accident
Best for: Customers seeking to connect with local representatives
Average cost: $34.75 per month
Our rating: 9/10
Top-notch customer service
First-time drivers and new utility trailer owners can be covered
Cheap rates
High ratings for claims satisfaction
Limited coverage to only individuals affiliated with the U.S military
Drivers with leased utility trailers are not covered
No discounts offered
USAA is a great option for young drivers with a utility trailer. Besides the exceptionally low prices, the policy is particularly desirable for drivers who plan to store their utility trailers for an extended period.
Note that USAA has a strict eligibility requirement. In fact, only two groups of people can purchase a policy from the insurer. Specifically, only people who have served in the military and those whose direct family members have had USAA insurance.
A great benefit of the utility trailer policy from USAA is that you can add on coverage purchased separately from auto insurance policies. For instance, you can add valuable personal property insurance, which protects any valuables being hauled in the utility trailer. You can also get umbrella insurance which protects you from all liability claims and lawsuits that go beyond the limits of your utility trailer insurance.
As it pertains to the pricing, USAA encourages you to get in touch to get a custom quote.
Best for: Customers affiliated with the U.S military
Average cost: $35.50 per month
Our rating: 8/10
Customizable specialty products
Provides several discounts
Utility trailer insurance is less comprehensive than those of similar competitors
A number of negative online feedback
Progressive was founded in 1937 and so far has over 23 billion in written premiums. It stands as the third-largest U.S-based insurer, backed by the solid financial strength and vast industry experience.
The basic coverage from Progressive can be purchased for as little as $406 per year. You will be able to secure several discounts, including for safe drivers, original owners, and renewal of policies without at-fault claims.
Progressive utility trailer insurance makes provisions for policy extension. You can include personal property coverage that includes coverage for all personal effects within the utility trailer. You can also include ancillaries and attachments coverage which covers all attached components in the event of bad weather. You want to have an extensive conversation with the provider to understand how much of your attachments will be covered.
Best for: Utility trailer insurance with discounts and add-ons
Average cost: $33.83 per month
Our rating: 8/10
Rated A+ by A.M. Best
Works with a large network of independent insurance agents
A diverse portfolio of utility trailer insurance products
Numerous discounts offered
24/7 customer service, including over the phone, online, and on their official application
Twice the average customer complaints
Allstate is a countrywide insurer with representatives in all 50 states, including Washington, D.C. With its significant financial stability, Allstate does not rely on third-party underwriting for its policies. The insurer brings with it over 80 years of experience in addition to strong customer service.
Allstate offers utility trailer owners a number of discounts, including:
10% off if you purchase your policy at least 7 days before it goes into effect
10% off for switching to the Allstate policy
5% off for enrolling in automatic payments
Up to 20% off if you have no recent insurance claims
The average minimum coverage utility trailer insurance costs about $565 per year, with the full coverage policy going for $1,674 per year. Still, the insurer insists that this premium might vary depending on location, coverage level, and personal factors
Best for: Numerous discounts
Average cost: $47.08 per month
Our rating: 7/10
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!
Not all those who wander are lost.
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