Does My Commercial Auto Policy Cover a Trailer I Tow for Catering or a Mobile Bar?

Is a Towed Trailer Treated Like a Vehicle or Like Cargo?

A towed trailer sits in its own category. While it is physically attached to a covered vehicle, liability coverage generally extends to accidents it causes, such as swaying into another lane or detaching. But the trailer's own physical damage, and anything permanently built into it like a smoker, tap system, or generator, typically is not automatically covered the way the towing vehicle is.

What Happens If the Trailer Detaches or Causes an Accident?

If a hitch failure causes the trailer to detach and strike another vehicle or property, this is treated as an auto liability claim because the trailer was being operated as part of the insured vehicle at the time. The restaurant's commercial auto liability responds to injuries or property damage to others, the same way it would for a collision caused directly by the towing vehicle.

Owned vs. Rented Trailers: Two Different Coverage Paths

IRMI's definition of a hired automobile, meaning one the named insured leases, hires, rents, or borrows, applies here just as it does to a rented van, but for equipment rather than a passenger vehicle. That distinction matters:

• Owned trailers generally need to be scheduled on the commercial auto policy or covered under inland marine for the equipment built into them
• Rented trailers may fall under the policy's hired auto provision, if that provision is active
• Neither is automatically covered without confirming the specific endorsement applies to trailers, not just vehicles

What to Confirm With Your Insurer Before Towing

Before adding a mobile bar or catering trailer to the fleet, or renting one for an event, ask your agent to confirm in writing whether the trailer and its built-in equipment are covered for physical damage, and whether liability extends to it while being towed on public roads.