Trucking is competitive
Getting a truckload from one destination to another is not always easy. Unless you have regular contacts and routes that your company hauls for. Even then there are risks associated with the trucking industry that is to be reduced, as accidents do happen.
One example of reducing the risk for your business is by having insurance for almost every type of situation. To fully protect yourself and your company, you need to have the right truck insurance coverage ahead of time. Even small factors where you may be uncovered form a gap in your policy such as during a simple exchange of cargo. This is where trailer interchange insurance comes in handy.
Outside your trucking liability insurance policy, you can protect yourself further, not to mention your income, property, and the property belonging to other people. Trailer interchange insurance is a smart way to conduct staying covered for one uncovered aspect of your trucking liability insurance policy.
Definition of trailer interchange insurance
We are sure most of our readers are aware of what trailer interchange insurance is, the title says a lot, but details on all policy coverage are necessary. For those who are not sure or are new to the trucking game, we will provide a basic definition. This way everyone will know what is involved with a trailer interchange insurance policy.
Basically, trailer interchange insurance is insurance coverage protecting the trailers owned by other companies. In other words, you are buying protection for those trailers you do not own but haul from destination to destination and during their interchange.
Trucking is Dangerous
Roads around the world are far from perfect. Highways and other streets used by truckers are not in prime condition. There are dangerous ruts, broken pavement, and other hazards. Hauling someone else’s trailer is not that simple and easy anymore.
Other drivers are not always responsible drivers, they take too many chances, or the drivers of other vehicles do not like to be near big rigs and make poor choices.
They often blame the rigs and their drivers for many of the problems they may even cause. If small vehicle drivers are scared of the big rig and start driving nervously, refusing to pass or pull over to let the rig pass them or merge into their lane. This is an accident waiting to happen.
Fatigue can also set in with trucker’s on long hauls, and their judgment becomes a bit impaired. They have spent long hours on the road and want to make it to their next stop. They are thinking about sleep instead of the road in front of them.
All of these situations make truck driving dangerous. Having one less worry can make all the difference between a jackknife and stop safely. Trailer interchange insurance gives you one less worry.
Protecting your income and savings
One thing that trailer interchange insurance does is protect you financially. Instead of having to pay for the damage out of your pocket or savings, you have financial protection. You won’t have to worry about losing your financial security if any accidental damage to the other person’s trailer when you are hauling it.
You can’t count on the trailer’s owner’s insurance to protect you. Their interests are only focused on what they own. Having trailer interchange insurance means you are protecting yourself against any possible financial loss especially when the trailer is being swapped out for another one or in the process of that.
The benefits of using trailer interchange insurance
One benefit of using trailer interchange insurance is that it can apply automatically. You do not have to have a separate written agreement to be covered in case of accidental damage.
Another benefit is that the trailer can be covered even when it is not attached to your rig. You can unhook while waiting for unloading and a new load and still be protected from any accidental damage done to the trailer. The coverage simply depends on the term ‘possession’. If the trailer is unhooked and still in your possession, then you are covered.
The third benefit of trailer interchange insurance is that it is not restricted to normal truck trailers. Trailer interchange insurance also covers containers. Containers may not be considered a trailer, but they are included in the definition of trailers found in the Uniform Intermodal Interchange and Facilities Access Agreement.
All you need to enjoy the benefits of a trailer interchange insurance policy is a written equipment exchange agreement.
Some limitations of trailer interchange insurance
As with any insurance policy, there will be limitations to the coverage. The first limitation is that there will be a maximum amount damage allowed to non-owned trailers.
This, in turn, provides for the second limitation. There will be a maximum amount of money involved with each type of damage covered by the insurance policy.
A third limitation involves actual insurance payout. Even though you are supposed to have coverage when the trailer is still in your possession but not hooked up to your rig. Insurance payouts may require that the trailer is hooked up to your rig in order for you to receive any compensation. Ask your agent or broker for all the details on the policy you choose.
This is why trailer interchange insurance is important
Sometimes all you have keeping you from going broke and losing a new load is your reputation. By using trailer interchange insurance, you are making a statement about yourself.
One, you are saying that you care about other people’s property. Their product and property mean something to you. This reputation helps you get more trucking opportunities.
Two, it says that you are a responsible trucker or trucking company who knows how to take care of business and the trailer owner’s property. You know how to conduct your actions the right way and know what you are doing.
Three, it shows that you are financially responsible. You know how to protect your company and your family from any accidental loss or damage.
All three actions tell other company owners that you are responsible, a good company, and act accordingly. Your reputation is enhanced and that gets you more employment as the years continue.
Reputation is important in an act of business. That is what makes using trailer interchange insurance important. It protects you as well as the property and the trailer’s owner.
Some final words
If you have not considered trailer interchange insurance, then talk to someone who knows at Strong Tie Insurance. They can help you get the best coverage possible at an affordable rate.