The world is ever-changing
The world has changed over the decades before technology all you needed was a handshake to seal the deal. Once a hand was given in agreement, no one worried about the details. The trucking industry, like most other industries, knows there are many details to cover. Due to all of the details in regard to making sure a business and the goods they ship are free from worry during transportation; a business needs adequate insurance protection.
That is why trailer interchange insurance is so important to the trucking industry today. This coverage can financially protect business owners from the ever-changing world. It is impossible to keep non-owned trailers from damage every time a trucker pulls one into a new destination. Having the right insurance protects the trucking company, employees, and their families.
Be Protected From All Aspects of a Trailer Interchange
Basically, trailer interchange insurance is an insurance policy put in place to help protect the trucking company from any accidental damage that may occur when a driver is loading and unloading cargo in the process of hauling freight from one city to another. The process of loading and unloading is covered during the interchange of goods.
The coverage usually applies automatically when the trucker purchases the policy. Sometimes the coverage only depends on who has possession of the truck and cargo if damage were to occur. This means that if the trailer is unhooked but still in the possession of the trucker then his trailer interchange insurance will protect his interests. But there are some restrictions that may apply.
In some cases, insurance payouts may require that the trailer is attached when the damage occurs. There are also restrictions on the type of damage and the amount of the insurance payout. Maximum amounts always play a role in these policies.
If you have any questions about the details you should contact a reputable trucking insurance agency like us, and ask questions that you may have. One thing is for sure, you will need an equipment exchange agreement to acquire trailer interchange insurance.
What does trailer interchange insurance cover?
One thing you may not know is that normal trucking liability insurance does not usually cover physical damage. This lack leaves the truck driver vulnerable to certain claims made by the trailer’s owner. This vulnerability is what makes trailer interchange insurance so important.
With trailer interchange insurance, you get coverage for the following incidents:
- When the freight is being unloaded
- When the freight is being loaded
- If you have an accident and physical damage occurs to the product
- When accidental fires start and damage the load
- When theft occurs
- When vandalism takes place
These are just some of the examples of protection you get when you opt for trailer interchange insurance. To be clear, this insurance only covers those trailers that you do not own. It does not extend to any trailer you own that is physically damaged.
How do you know when you have the right policy?
Just like anything else in the world, there are policies that are a better fit for your company needs. Trailer interchange insurance is no exception to this fact. When you start your search for commercial trucking insurance, you want to make sure the following are present:
- It covers any trailer you haul that you do not own. You are not always going to haul the same trailer each and every time you are on the road.
- You are in possession of a written agreement with the trailer’s owner. Verbal agreements will not work in court.
- It makes sure that you are not paying out of pocket for any accidental physical damage. This protects your income and any financial assets.
It is better to make sure you are safe and covered than sorry if there are any gaps in your insurance protection. A trucking insurance company like us will be able to give you all the details and answer all your questions.
How much does trailer interchange insurance cost?
This depends on the situation and depends on the following factors:
- Your driving record
- Your driving experience
- Local state regulations
- The value of the trailer in question
Plus, you should compare your contract requirements with mandatory state regulations to be sure you can get the right coverage.
Why use trailer interchange insurance?
Trucking company fleet owners are businessmen just like any other. There is a business to run and it needs to be protected from any and all assets accumulated or acquired. Using trailer interchange insurance helps protect your business from any hardship caused by unexpected financial penalties.
Using trailer interchange insurance helps build and maintain your company and personal reputation as an owner. A good reputation tells trailer owners you are the man they want to haul their freight. Taking this precaution also says that you are concerned about other people’s property. This attitude also enhances your reputation as shows that you are a businessman who takes your responsibilities seriously. Not only do you protect property not belonging to you, but you take the right steps to protect yourself and your family.
It also implies that since you take these steps to protect your business and family, you will enforce driving safely and deliver the goods as promised. Using trailer interchange insurance shows good ethics in many ways for your trucking business.
Why take any chances?
Trucking companies face a lot of expenses on a day to day basis. They may also be perceived as a cash cow for scams. Some trucking company owners may not think that adding another expense is going to be worthwhile; but why take the chance? The risk of adding unexpected expenses and penalties is far more expensive than the amount of the policy.
To answer the question, why use trailer interchange insurance? It is a smart business and family decision to protect all important aspects of your life.
It protects your investments in your business, your family and it protects you. One small added expense can be the difference between coverage and financial ruin. Trucking has enough dangers without the rig owner adding to them.
The best way to find the right policy for you is to talk with a trucking insurance company like Strong Tie Insurance and ask questions as we are here to help you.