Arizona Adjuster Practice Exam

What coverage should an insured seek to protect losses related to the use of another's trailer?

1. Standard auto liability

2. Trailer interchange coverage

3. General liability

4. Business property coverage

The correct answer is: Trailer interchange coverage

The most appropriate coverage for protecting losses related to the use of another's trailer is trailer interchange coverage. This type of coverage is specifically designed to address risks associated with the use of trailers owned by others. Trailer interchange coverage fills an important gap by providing liability protection for damages that occur while you are using another party's trailer, as well as physical damage coverage for the trailer itself. This is critical for businesses that rely on trailers for their operations and frequently switch between different trailers owned by various parties. In contrast, standard auto liability primarily covers injuries and damages to other people and property caused by the insured vehicle, but it may not extend to trailers that are not owned by the insured. General liability covers incidents that could occur at a business premises but does not specifically address vehicle or trailer-related risks. Business property coverage is geared towards protecting physical assets of the business and would not provide adequate coverage for liabilities or damage associated with using another’s trailer. Thus, for someone looking specifically to cover losses associated with borrowed or rented trailers, trailer interchange coverage is the most suitable option.