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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. 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. It offers 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.
Commercial Utility Trailer Insurance coverages
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 get:
For utility trailer businesses, general liability insurance provides a $1 million-$3 million per occurrence limit with an aggregate of $3 million-$4 million.
Professional liability insurance will pay for indemnification and defense costs if clients sue for negligence because of:
In the event of the occurrence of the insured risk, professional liability insurance offers a $1 million per occurrence limit with an aggregate of $2 million.
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. The limits of the policy are $1 million-$2 million with an aggregate of $2 million.
The primary function of commercial property insurance is to recover losses if your utility trailer business’s building is damaged or destroyed by:
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. It’s possible for you to find a carrier providing up to $500,000 coverage.
Workers’ compensation insurance will cover the following costs:
Determining whether you need insurance for a utility trailer depends on several factors, including how you use the trailer and your existing insurance coverage.
The 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.
There are various factors that will affect the cost of utility trailer insurance, such as the type of trailer, the dedicated value of the trailer and the different policies available. Here’s breakdown of average costs along with the affecting factors:
Average Costs
Minimum Coverage: Typically, minimum utility trailer insurance can be estimated to cost between $200 to $800 in a year.
Full Coverage: On the other hand, full coverage can also be high, reaching from $417 to $1, 674 a year, depending on the insurance company and some specific details in the policy.
Insurance companies also underwrite emergency roadside assistance for utility trailer businesses. This will provide a $750 compensation for transportation expenditures if your utility trailer breaks down and needs to be towed. You also get a $500-$1,000 refund for tire replacement and roadside repair services.
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.
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 compensate your loss if the utility trailer gets damaged or lost due to theft.
On the other hand, replacement cost theft coverage will compensate and give you the chance to buy a new utility trailer.
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The insurance rate for a utility trailer depends on multiple factors. 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 come in all shapes and sizes.
Take a look at this table that shows the rates of the best utility trailer insurance companies:
| Company | Cost per Month | Cost per Year | |
| CoverWallet | $25.67 | $308.04 | |
| NEXT | $27.88 | $334.56 | |
| Tivly® | $27.88 | $334.56 | |
| Thimble | $31 | $372 | |
| Progressive | $33.83 | $406 | |
| State Farm | $34.75 | $417 | |
| USAA | $35.50 | $426 | |
| Geico | $97.33 | $1,168 |
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.
It covers utility trailers used commercially through its commercial truck and trailer insurance program. Policy options are general liability and commercial auto insurance.
Average cost: $25.67 per month
Our rating: 10/10
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.
Average cost: $27.88 per month
Our rating: 10/10
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.Coverage for utility trailer rental or leasing businesses is offered in partnership with Tivly®.
Average cost: $27.88 per month
Our rating: 9/10
Average cost: $31 per month
Our rating: 9/10
Geico is the country’s second-largest insurance company. It offers low rates utility trailer insurance enabling you to save a lot of money on auto 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.
Average cost: $97.33 per month
Our rating: 9/10
State Farm offers its auto insurance policy in a total of 33 states.a full-coverage policy will cost you $1,045 per year.
Best for: Customers seeking to connect with local representatives
Average cost: $34.75 per month
Our rating: 9/10
USAA is a great option for young drivers with a utility trailer. USAA only allows people who have served in the military and those whose direct family members have had USAA insurance.
Average cost: $35.50 per month
Our rating: 8/10
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.
Average cost: $33.83 per month
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