Do you need insurance on a cargo trailer in Ontario?

Liability coverage extends from your towing vehicle to the trailer while attached, but this does not cover physical damage or the goods inside. You need separate comprehensive coverage for the trailer asset and Motor Truck Cargo insurance (typically $100,000 minimum) to protect the freight against theft or collision.

Ontario Commercial Trailer Coverage Details

• Physical Damage: Protects the trailer itself (not the cargo) from fire, theft, or rollover. Premiums generally cost 2-4% of the trailer's stated value annually.
• Trailer Interchange: Required if you haul non-owned trailers (e.g., for Amazon or large logistics firms). This covers damages to trailers you do not own while they are in your possession.
• Detached Liability: Standard liability often ends when you unhook. Specific endorsement adds coverage for trailers parked at yards or loading docks.

Review your CVOR status and contract requirements to determine necessary limits. Contact a licensed commercial broker to bundle trailer physical damage with your primary liability and cargo policies for potential fleet discounts.