Which statement is correct regarding the Non-Owned Detached Trailers coverage extension of the Building and Personal Property Coverage Form (BPP)?

The Non-Owned Detached Trailers coverage extension within the Building and Personal Property Coverage Form (BPP) is designed to provide protection for trailers that are not owned by the insured but may be used in conjunction with their business operations. The correct statement indicates that this coverage allows for the inclusion of leased trailers, which can serve purposes such as office expansion or additional storage.

This is significant because many businesses lease trailers to enhance their operational capacity without the commitment of ownership. By covering leased trailers, the insurance policy offers crucial support to businesses that temporarily need extra space or facilities without incurring liability for trailers they do not own. This coverage thus addresses the practical needs of businesses and mitigates potential financial risks.

In contrast, other statements misinterpret the parameters of the coverage. For instance, stating that the coverage does not extend to trailers used for business purposes overlooks the fact that it specifically includes those used in business contexts, including leased ones for expansion or storage. The mention of general liability insurance for trailers inaccurately conflates different types of coverage that serve distinct purposes in a business liability context. Lastly, asserting that only owned trailers qualify contradicts the extension's intent to cover non-owned assets, which is central to aiding businesses that utilize leased equipment.