The trucking industry comes with so many nuances that it can be quite hard for owners to determine which coverage types are absolutely necessary and which ones are optional.
Most of these coverage decisions will largely depend on the types of contracts a transportation or trucking company uses. Most contracts are covered by the usual trucking auto liability policy, while others need additional coverage.
An example of such a contract is the trailer interchange agreement. It is the type of contract used if two transporting parties are involved in a transfer of goods. This agreement is needed if different truckers or trucking companies will haul a trailer of goods going to its destination.
So if you are the trucker or trucking company in this agreement, you're likely to need trailer interchange insurance to protect you while you're carrying a non-owned trailer.
This truck insurance policy will protect the trucking company from any damages that may occur when the goods are being loaded and unloaded.
As briefly discussed above, trailer interchange insurance protects the trucking company from financial obligations caused by any physical damage to the cargo they are carrying during the loading or unloading process.
Your drivers and truck loaders can be the most gentle and careful people in the world, but it is almost impossible to avoid damages on a non-owned trailer whenever your trucks pull them to a new location. If you are in the possession of the trailer when you notice some physical damage, you're bound to be held liable.
Getting trailer interchange insurance will also build and strengthen your business and personal reputation. A good reputation is extremely crucial in a service-based business. Without you having to say anything, it will tell trailer owners that they can trust your company to haul their freight.
Getting insurance coverage and taking this precaution is a clear indication that you take the risks seriously, and that you care about protecting other people's property. By getting physical damage insurance and showing that you are committed to transporting goods safely and as promised, you improve people's trust in your fleet.
Overall, having trailer insurance displays good ethics in many ways for you and your business.
One thing you may not realize is that trailer interchange insurance does not always cover physical damage. This gap can expose the driver to certain damages claimed by the trailer's owner. A vulnerability like this should be addressed by trailer interchange insurance.
With trailer interchange insurance, you get coverage for the following incidents:
These incidents are just some examples of what is covered by trailer interchange insurance. But keep in mind that this type of insurance policy only covers loss or damage on trailers you don't own.
An insurance premium - no matter what type - is never the same for everyone. The calculation will depend on the situation and several factors, such as:
On top of that, you also need to compare your contract requirements to your state's mandatory regulations to ensure that you will get the right coverage.
To apply for a trailer interchange policy, start by getting a list of trucking insurance companies in your area. Ask some friends and colleagues or do a quick search on Google. Check out their reputation and reviews before you narrow down your list.
Once you have a few left, ask for quotations from each of them. These quotations are usually free and can be requested through their websites. You will likely fill out a form to help them better assess your needs know what coverages you require. If you don't like to do it online, you can also meet with insurance agents at this point.
Before you choose an insurance company and buy the policy, make sure you consider important factors such as the types of damages covered, deductibles, limits, and restrictions. Your insurance agent must explain to you every single detail, provision, and fine print before you sign.
The Insurance Information Institute (III or Triple-I) aims to empower consumers by providing them with information to appreciate the value of insurance, manage risks, and make educated decisions. III has more than 60 insurance companies as members and aims to be the #1 source of insurance information online.
As a trucking company fleet owner, you are also a businessman. You have a business to run and getting trailer insurance coverage will help you protect your business from financial hardships caused by unexpected penalties and damages to pay.
If you want to fully protect your fleet by getting trailer interchange insurance, let us guide you! Contact Assured Standard today!