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Policy Issues- When there's a trailer in BAC

Regarding trailers and coverages, what is automatically covered and what is covered if the trailer becomes disconnected?

By Chris Amrhein | Updated on June 01, 2009

From the e-mailbag comes a note from alert reader David: “I’ve read your columns for a long time and always enjoy them. I’d like it if you would discuss trailers and the business auto policy in a column. I’ve read a number of opinions regarding trailers and coverages. RE: (1) What is automatically covered (2) What is covered if it becomes disconnected (listed or unlisted), etc. The ISO business auto form is always a confusing read!” Although I can’t answer every e-mailed plea I receive, it’s June and I’m in a great mood. The weather is stunning, baseball is in full swing, Billy Joel is on tour again, and I can be talked into just about anything. So, David, here we go! While I agree the ISO BAC isn’t exactly written with the simple clear story line of a Disney cartoon, it doesn’t necessarily rise to the level of complexity in “Apocalypse Now” (I believe that had something to do with Vietnam). So let’s just pick a place to start and see where it leads. First, let’s see if the form actually treats trailers as different from any other auto. Looking at the ISO BAC (CA 00010306), we find the definition of “auto” on page 9:

“Auto” means: 1. A land motor vehicle, “trailer” or semitrailer designed for travel on public roads.”

So anywhere the policy mentions “auto,” it includes trailers. All coverages of any type that are provided for an “auto” we now know also will cover a trailer. Yet “trailer” is in quotes, so the form must define it somewhat differently than other autos. On page 12 we find that definition:

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