Physical damage coverage is provided when auxiliary power units (APUs) are permanently attached to a tractor; however, the value of the APU must be included when determining equipment values for insurance coverage. At the time of a total loss, the APU is surrendered because it is included in the salvage value of the tractor.
APUs can be insured separately on an inland marine floater policy. This allows the APU to be insured with an optional lower deductible and provides the flexibility to remove the unit from the tractor at the time of a loss when no damage occurs to the APU.
For more information on this and other insurance topics and coverage, please call our office.