Trailer Interchange insurance provides Physical Damage insurance for trailers being pulled under a trailer interchange agreement. Some brokers require a trailer interchange agreement in order to haul freight. If this is agreement is a requirement, to be in compliance with the contract, you will need to purchase trailer interchange insurance to protect you while you're in possession of a trailer that you don't own. A trailer interchange agreement is a contract that arranges to transfer a trailer from one trucker to another in order to complete a shipment. Essentially, the coverage provides physical damage insurance for non-owned trailers while under dispatch. The coverage protects you, the motor carrier, if the non-owned trailer you are pulling is damaged by collision, fire, theft, explosion or vandalism. Minus the policy deductible, this endorsement assists in the repair or replacement of the damages. Most insurance companies will only provide this type of coverage if they write the Primary Auto Liability and will require a copy of the complete trailer interchange agreement for their files.
With trailer interchange insurance, you must select both a limit and a deductible. The limit is a stated amount that describes how much your insurance company will pay in the event of a claim. The limit of coverage should be indicated within the contract the broker provides. In most cases, the stated limit is between $20,000 to $30,000 and the deductible would be $1000.
Our agency specializes in Commercial Truck Insurance nationwide, with current markets providing excellent rates for trucking coverage in KY, GA, TN, AL, FL, AR & TX. If you have questions regarding Trailer Interchange we would like to hear from you. Our agency can build a policy to meet the needs of your operation.