My 16-foot enclosed cargo trailer was hitched to my truck. I came out of the hotel, and the truck was there, but the trailer was gone. Inside was $30,000 of equipment. My Auto insurance paid $8,000 for the trailer (the box). They paid zero for the $30,000 of contents.
Key Takeaways
- Auto vs. Contents: Commercial Auto covers the trailer (Physical Damage). It never covers the business contents inside.
- Inland Marine is Mandatory: You must have a separate Inland Marine / Tool Floater policy for the contents.
- Detached Trailer Risk: If the trailer is unhitched and sitting at a job site, Auto insurance usually stops covering it unless you have “Non-Owned / Hired” or specific “Trailer Physical Damage” listed on the policy.
- Anti-Theft Proof: Deductibles are often lower if you use a high-end hitch lock (like Proven Industries) or wheel boots.
The “Why” (The Trap): The Two Policies
People assume “Full Coverage” on a truck/trailer combo covers everything.
- Policy A (Auto): Covers the steel box on wheels.
- Policy B (Inland Marine): Covers the tools inside.
If you only have Policy A, you are driving a $30,000 liability gap down the highway.
The Investigation: “I Called Them”
I priced out coverage for a 2024 Cargo Trailer ($10k value) with $20k of tools.
1. Progressive Commercial Auto
- Trailer Coverage: $10k Comprehensive/Collision.
- Cost: ~$200/year.
- Contents: Excluded.
2. Adding Contents (The Fix)
- Option A: Add an “Inland Marine” endorsement to the same policy (if available).
- Option B: Buy a standalone Tool Floater.
- Cost: ~$400/year for $20k contents coverage.
3. The “Unhitched” Problem
- Scenario: Trailer left at job site for a week.
- Auto Policy: Covered (usually) for theft of the trailer itself.
- Contents: Covered by Inland Marine regardless of location.
Comparison Table: Trailer Theft Coverage
| Item Stolen | Commercial Auto Policy | Inland Marine Policy | Homeowners Policy |
| The Trailer Itself | Covered | Not Covered | Not Covered |
| The Tools Inside | Denied | Covered | Denied |
| The Spare Tire | Covered (Part of trailer) | Not Covered | Denied |
Step-by-Step Action Plan
- Inventory the “Rolling Warehouse”: Treat the trailer like a building. What is the total replacement cost of everything inside? Most people underestimate this by 50%.
- Buy Inland Marine: Ensure the limit matches your inventory.
- Get a Puck Lock: Standard padlocks are cut in seconds. Use hidden-shackle puck locks on the trailer doors.
- GPS the Trailer: A trailer is the easiest thing to steal. Hide a GPS tracker in the roof vent or wiring harness. Recovery allows you to get your tools back, which is better than an insurance check.
FAQ
Q: Is the trailer covered if my employee takes it home?
A: Yes, Commercial Auto usually follows the vehicle, but check your “Permissive Use” clause.
Q: What if the trailer leaks and ruins the tools?
A: Water damage (leaking roof) is often covered by Inland Marine, but the repair to the leaky roof is not (wear and tear).
[IMAGE: Diagram showing a truck and trailer. Arrow to Trailer: “Auto Policy”. Arrow to Inside Trailer: “Inland Marine Policy”.]