Why do cargo trailer businesses need insurance?
Federal and state laws likely require your business to carry liability and cargo insurance. Business insurance financially protects your cargo trailer from lawsuits, injuries, and fires, so your company can survive a disruptive event.
Find affordable coverage
With Insureon, businesses that depend on cargo trailers can get free quotes from top-rated providers.
A licensed agent will help you find the right coverage. Get multiple quotes quickly with one easy online application.
What types of insurance do you need for cargo trailers?
These policies cover the most common risks of a cargo trailer business.
General liability insurance
This policy covers the most common lawsuits brought by people outside your business, such as a client who trips over a box at your company's office.
- Customer bodily injuries
- Customer property damage
- Copyright infringement
Business owner's policy
A BOP is a cost-effective way for cargo trailer companies to buy general liability coverage and commercial property insurance together.
- Accidents that harm customers
- Theft or vandalism of business property
- Business interruption insurance
Commercial auto insurance
Commercial auto insurance covers accidents involving your business's commercial trucks. Each state has its own requirements for auto liability insurance.
- Injuries caused by your truck
- Property damaged by your truck
- Physical damage coverage
Workers' compensation insurance
Most states require workers' comp for cargo trailer businesses that have employees. It also covers work-related medical costs for sole proprietors, which personal healthcare can deny.
- Employee medical expenses
- Disability benefits
- Workplace injury lawsuits
Cyber insurance
This policy helps cargo trailer operators recover financially from data breaches and cyberattacks. It's recommended for any business that handles customer information.
- Data breach investigations
- Fraud monitoring services
- Cyber extortion demands
Commercial umbrella insurance
This policy helps private haulers meet requirements for higher limits. It boosts the coverage limits on commercial auto, general liability, and employer's liability insurance.
- Multi-vehicle accidents
- Customer injury lawsuits
- Employee injury lawsuits
How much does cargo trailer insurance cost?
A small cargo trailer business can expect to pay less for insurance than a large trucking business.
Factors that affect business insurance rates include:
- The items you transport, such as household goods or hazardous materials
- The type of trailer you tow, such as a food trailer, utility trailer, or camper
- The amount of cargo and liability insurance required by the Federal Motor Carrier Safety Administration (FMCSA)
- Number and type of commercial vehicles
- Employee driving records
- Type of coverage, such as comprehensive coverage, collision coverage, or fleet insurance
- Policy limits and deductibles
How do I get commercial cargo trailer insurance?
It's easy to get vehicle insurance and other policies for your cargo trailer business if you have your company's information on hand. Our application will ask for basic facts about your business, such as revenue and number of employees.
You can buy a policy online and get a certificate of insurance with Insureon in three easy steps:
- Complete a free online application.
- Compare quotes from leading insurance companies.
- Pay for your policy and download a certificate.
Insureon's licensed insurance agents work with top-rated U.S. providers to find affordable insurance for your business. Get peace of mind knowing you have the right coverage for your business needs.
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FAQs about cargo trailer insurance
Review common questions about cargo trailer insurance policies.
Does commercial auto insurance cover my cargo trailer?
Commercial trailers often need their own trailer insurance coverage.
A commercial auto insurance policy sometimes provides liability protection for accidents involving your insured vehicle and its towed trailer. However, it depends on the size and type of trailer, and some may require a mobile equipment endorsement or other type of trailer insurance.
Regardless of what type of goods you transport, you'll need to research the requirements in your state. For example, California and New York have different requirements for registering and titling an enclosed trailer, along with their insurance requirements.
You'll need additional coverage for the goods inside the cargo trailer. Inland marine insurance covers your business property wherever it goes, including while it's being transported in a trailer.
Does a cargo trailer need insurance coverage for when it is in transit?
Yes, you may need cargo insurance, a type of inland marine insurance, to protect your cargo while it's in transit. This type of trailer insurance covers natural disasters, vehicle accidents, and other losses.
Any business that transports household goods across state lines must carry cargo insurance to comply with federal regulations. Your state may also have its own requirements for the transportation of cargo.
Federal and state insurance requirements often depend on the type and amount of goods being transported. For example, you might need to pay extra fees and carry extra coverage to transport hazardous materials.