Trailer Rental Question

[Shane Wilson]

Hello, I'm new to the P&C insurance world. I just jumped in and opened up an independent agency a couple of months ago. I apologize in advance if my questions are relatively beginner.

I have a customer who wants to insure a 16 ft cargo trailer that they plan to lease out to others for extra income. Their questions are: 1) What coverage do they need, and 2) What coverage would the people who lease the trailer from them be required to have? The location is TN.

My basic understanding would be a commercial auto on the trailer with a separate umbrella GL would probably be ideal. Is this correct or since they are making a business out of leasing the trailer is there a different coverage they would need? Recommended carrier(s) for this coverage type?

Thank you in advance for the help!

 

[adjusterjack]

They would need the same coverage that Avis, Hertz, Uhaul, and Ryder have.

Rental vehicle is rental vehicle.

I hope your client understands that it won't be cheap on an amateur = high risk basis, and you are likely going to have to get the coverage through the E&S markets.

Once your client finds out how much this insurance will cost, he is likely to abandon the idea, or he will foolishly do it without the proper insurance.

Make a few enquiries but don't waste too much of your time on it.

 

[Markthebroker]

Hello, I'm new to the P&C insurance world. I just jumped in and opened up an independent agency a couple of months ago. I apologize in advance if my questions are relatively beginner.

I have a customer who wants to insure a 16 ft cargo trailer that they plan to lease out to others for extra income. Their questions are: 1) What coverage do they need, and 2) What coverage would the people who lease the trailer from them be required to have? The location is TN.

My basic understanding would be a commercial auto on the trailer with a separate umbrella GL would probably be ideal. Is this correct or since they are making a business out of leasing the trailer is there a different coverage they would need? Recommended carrier(s) for this coverage type?

Thank you in advance for the help!

The two markets I use for this type of thing are GMI and ARRC. Contact them and ask about the coverages available.

 

[Shane Wilson]

Great thank you both for the helpful information and direction.

 

[marindependent]

Once your client finds out how much this insurance will cost, he is likely to abandon the idea, or he will foolishly do it without the proper insurance.

Agreed - that is one of the reasons that you ask them what their expected revenues from the venuture will be, You may be surprised how many folks revenues are less than true cost of insurances.

Make a few enquiries but don't waste too much of your time on it.

LOL - really?

 

[Markthebroker]

Agreed - that is one of the reasons that you ask them what their expected revenues from the venuture will be, You may be surprised how many folks revenues are less than true cost of insurances.

LOL - really?

Actually, I've written a few small rental businesses, and there are some carriers out there that are very competitive, but they are very, very hard to find. In all seriousness, I likely saved the op close to a full day of work.

 

[Al3x Lee]

In all seriousness, I likely saved the op close to a full day of work.

You're a real hero

 

[Markthebroker]

You're a real hero

Damn straight I am.

Respect the cape.