California Commercial Insurance Practice Exam

The Non-owned Detached Trailers coverage extension is designed to protect businesses that use trailers not owned by them but still necessary for their operations. The specific requirement that the trailer must be used in the insured’s business and under the insured's control establishes a clear connection between the trailer and the business activities of the insured. This means that even if a business does not own the trailer, they can still receive coverage as long as the trailer is actively being utilized for business purposes and is managed by the insured.

This coverage is crucial as it addresses the risk of liability and potential losses associated with the use of trailers that are essential for business operations, even if those trailers belong to another entity. It ensures that businesses can continue to operate smoothly without the risk of significant financial loss from incidents involving trailers that are effectively a part of their operational logistics.