Well, since we're trying to boost up the trailer section, I have a question.

How does insurance work on a trailer? My situation: My band program is purchasing a small cargo trailer to haul instruments. It would be insured by the district or band organization, but towed by personal vehicles, myself or parents. The district claims that when the trailer is towed by a parent, it's their liability. That doesn't make sense to me if we have a policy on it. Would there be a difference on the contents of it and the trailer itself, or any damage it caused?

Could any of you insurance gurus help out? Michigan is a no-fault state.

Not an insurance guru but I do think the district is right. The district does not want to be responsible for something they can't control (the personal part). I'm not actually sure how legal it is especially if state dollars are involved.

Where the hell's Billy????

Not sure if this applies, but when I sold our Sea Ray to our friends, I asked my agent about the boat insurance--I was told that the boat was covered, no matter who was towing it or who was using it. That was a few years ago...

I'm right here, FR! While I don't know MI law very well at all in respect to its No Fault... I think I can answer your direct question accurately.

Insurance follows the motor vehicle. In this case, the tow vehicle. If you are towing their trailer with a privately owned vehicle, that vehicle's insurance will be primary and provide the liability insurance for it. However, are you being paid for the use of your tow vehicle? Is towing this trailer part of your duties of employment? If so, then the school district is making you an "Insured" on their policy, so their insurance would appliy to both your tow vehicle and their trailer.

You need to contact the school's insurance agent and your own insurance agent and give them the specifics. See what they advise you to do. Cause if you have an accident while towing that trailer, I guarantee you that you will be sued big time, as most of the time schools have limited liability and are not able to be sued like a private individual can be.

I can ask a friend who used to be a claim adjuster in MI for some more specifics, if you can provide me with the answers to the "employment" questions I asked. If you don't talk to a MI insurance professional first, that is. Which is what I recommend.

Somehow can't imagine if anything ever did happen that it could be a real mess with the insurance companies suing each other.

can you use school vehicle to tow such as the suburbans that many shools have?

On Holiday, no school vehicles available, just what I can beg borrow or steal.

Billy, it's funny you mention it, the district THINKS I'm covered as an employee if I'm towing it, but they're pretty sure that a parent takes the liability if they're towing it. I'm not required to tow anything, but it is part of my job, if you can understand that convoluted logic.

They are checking with the insurance company, but it's supposed to take a couple of weeks, which is driving me insane!

Casual, my buddy confirms that the tow vehicle's insurance is going to be primary, almost "no matter what". So parent pulling it with their personal car, their insurance will cover the liability. You towing it with your personal car, even as an employee, you insurance will cover the liability.
Think of it this way, the trailer itself almost can't do anything wrong. It will be the vehicle it is attached to that does something wrong.
The school's insurance would provide excess coverage if the vehicle owner's policy limits were to be exceeded.

Make sense?

Interesting info...

Just remember that your auto policy is not providing coverage for the trailer itself or the contents of.

Many homeowners policies provide some coverage for property in your care, custody and control but usually the amount of coverage is limited. There may also be coverage for trailers but each contract is unique and you should read thoroughly.

Yes, the coverage is for Liability only. The trailer still needs to have its own collision/comprehensive coverage in order to pay for any physical loss to it. And as long as the trailer has physical damage coverage, "any" coverage that your homeowner's insurance "may" provide, would be secondary.

Ok, that's what I needed to know. So, the 2,500.00 trailer and 15,000.00 worth of instruments are involved in a wreck. The drivers insurance takes care of damage to property and people, the district insurance covers my trailer and instruments. Am I reading you folks right?

As far as the instruments go - Your home policy would not afford any coverage, the instruments are not for your personal use, nor would you be liable for them on a personal level while in a professional capacity. Most homeowners policies actually exclude professional use musical instruments.

In regards to the trailer - if you own the trailer - the district's coverage most likely will NOT cover the trailer in any way shape or form. If the " program " or district is the owner, then if coverage were to be afforded, it would be from the district's coverage.

In reference to Bodily Injury Liability and Property Damage to others, if you are a paid employee towing as part of your job, you are crossing over a line from personal use to professional / commercial use when using your vehicle. The delineation point is the fact that you are an employee acting in a professional manner, not personal.

You very well may find yourself with you personal auto carrier denying a claim due to non-personal usage.

More importantly - Why would you or should you have or want to take on any personal exposure and put a claim in against your coverage while acting in a professional capacity ? The burden of securing coverage and the cost should be the districts, not yours personally.


A long discussion and preferably something in writing from both the district's carrier and your own is warranted IMHO. A few poignant questions

Where is the line as to what you can tow with your personal vehicle for your employer ?

What is a reasonable size of trailer ? What is the limit on weight / length on YOUR policy ?

Are you acting in professional capacity ? If so does your personal policy exclude commercial / professional / for hire use.

Is towing the trailer part of your job description?

What are the limits you have ?


Best of Luck.

Scott

CB,
Are any of the instruments privately owned or are they all school property? Most smaller instruments in bands here (trombone size and down) are owned (or rented) by the students. If personal instruments are in the trailer, does that impact matter any? Seems there could be 3 different policies involved then...your personal, the owner's of the instruments and the school districts???

Our scout troop has a small trailer. Technically it is owned by the church that sponsors us. I often carry scout's personal gear in it with my private truck. Is this different since I'm a volunteer vs being paid?

Wow...insurance can sure complicate things!

Don't use the word "my" to describe the trailer, please. It's the School's trailer, right?

For the most part you are reading correctly. The trailer's insurance will cover its physical damage. However, as HB pointed out, if the instruments/equipment are all privately owned, their owner's insurance may or may not cover them. The school's insurance shouldn't be made to insure things they don't own, should it?

I agree with Scott completely in regards to you being "required" to use your personal vehicle to tow the district's trailer for district functions, as part of your job. The district needs to add your tow vehicle to their policy for those instances. Why should your insurance be made to cover (or deny) liability for your employer. However, it's kinda like the instruments, why should the school's insurance be made to insure your vehicle when they don't own it? Kinda a strange circle, isn't it? I only told you how it's supposed to work, not the way it should work.

can you get a rider on your insurance that lists the school district as additionally insured? Scott, Billy???

As the BABC resident underwriter, I'll chime in. Nope.

I think I'm getting it. Instruments on THE trailer would in almost any case I can think of be school instruments. They're generally the ones that are obnoxiously large, which is why the school provides them.

It would be nice to get the district to take care of transporting all this stuff, but they would simply never do it, and continuing the program we run here, we have to travel sometimes.

As I think about it, I imagine I could maybe get a Maintenance truck to haul things, but then I'd have to pay for the driver, which I imagine would be overtime, and that would be the end of what little budget I have.

Can you drive the maintenance truck?

Not on your typical personal auto policy. Business Auto / Commercial Auto - no problem.

Excatly Scott (thanks for the initial answer Rocnat). It's the school district that should be adding you as an insured in those instances, not the other way around, casual.

Thanks Scott, at work we are always asking our subs to list additional insured on their policies.