April 2, 2024

Trailer Interchange Coverage

The trailer interchange agreement is designed to cover the transfer of goods during transit to their destination when being hauled by trucking drivers working for different companies. Trailer interchange agreement occurs since most companies contract third-party firms to handle shipping and delivery. The unique agreement necessitates the trailer interchange coverage to protect you and the truck’s owner when transporting a trailer or a container you don’t own. Trailer interchange insurance is primarily beneficial to the transport provider to mitigate financial losses in case of an accident. Consider speaking to a trusted truck insurance provider in Northridge, CA, about insurance packages to protect your trucking business.

Importance of Trailer Interchange Coverage

Trailer interchange insurance is a form of trucking auto liability insurance that provides financial coverage for physical damage sustained by a trailer while in the possession of the trucker. Since the trucking exchange insurance may not form protection for the owner of the trailer, they may ask the hauling company to obtain trailer interchange insurance. The trailer interchange insurance operates like cargo insurance by providing financial coverage to the trailer and the operator from various losses, including:

Theft
Fire
Vandalism
Collision

Special Considerations of Trailer Interchange Coverage

There is always a written trailer interchange agreement that specifies the carriers making the pickup and delivery, the transfer location, the length of the contract, how and when the trailer may be used, the destination of the goods, and applicable fees.

Non-Owned Trailer Coverage

You can request unique insurance coverage called non-owned trailer physical damage insurance to transport a segment omitted from the trailer interchange agreement. Non-owner trailer coverage applies when someone else’s trailer is attached to the insured tractor. The non-owned trailer insurance does not cover a trailer packed at the transport hub of the motor carrier’s lot. In contrast, the trailer interchange coverage covers non-owned trailers, whether in storage, attached, parked, rolling, loaded, or empty. By the other side, you can consider a Non-Trucking Liability Insurance wich offers additional coverage for owners and drivers with limited protection from the motor carrier’s auto insurance. Take a look on our blog to know more here.

A Scenario of Trailer Interchange Coverage

A driver for Interstate Trucking Company is transporting a non-owned trailer under an interchange agreement with a logistics network. During the trip, the driver pulls into the parking lot of the restaurant to have lunch. As the driver enjoys lunch, another truck driver loses control while parking and causes extensive damage to both the truck and the trailer. Since the driver owns the truck, the physical damage is covered by his insurance. However, since the driver doesn’t own the trailer, the trucker’s insurance will not cover the damage sustained by the trailer. Instead, the trailer’s interchange insurance will cover the cost of replacing or repairing the damaged trailer. Although the limit of trailer interchange coverage varies by provider, choose a limit that will cover the cost of repairing or replacing the damaged trailer.

Speak to an Experienced Trailer Interchange Insurance Provider

Acquiring a trailer requires a substantial sum of money, which can lead to massive losses in the case of an accident. Your company may also suffer additional losses if the goods in transit are stolen or damaged. Fortunately, Panorama Insurance Agency is highly experienced in the industry and can recommend a suitable insurance package to cover your investment. Contact us online for a free quote.

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