Non-Owned Trailer Exposures: Who Owns the Risk?

0 20 April 2017

There is a little known and often overlooked issue that continues to grow within the trucking industry.

“Truckers are responsible not only for liability, but also for any physical damage to trailers of others while in their possession.”

The Risk
It is common practice for truckers to use trailers belonging to others in the normal course of their business. All ISO Coverage Forms (Business Auto, Truckers, Motor Carrier) extend Liability Coverage for non-owned trailers while attached to a covered auto.

Truckers however are often responsible not only for liability, but also for any physical damage that occurs to trailers of others while in their possession. Physical Damage Coverage for non-owned trailers is excluded by standard ISO coverage forms, which exclude liability for property of others while in the insured’s care, custody, or control. This coverage must be added, and is occasionally referred to as “bailee coverage” – a bailee being “any individual or entity which holds property of another”, the property in this case being a trailer.

Solutions for Providing Physical Damage for Non-Owned Trailers 1) Non-Owned Trailer Physical Damage