For those who are new to the trucking business, you might find yourselves being asked to obtain trailer interchange insurance. This is especially true if you’re planning to enter into contracts to haul trailers owned by another company.
But when we hear of truck insurance, we mainly think of indemnity in case of loss or damage to the trucks you own or the cargo you’re hauling. It doesn’t usually cover damages done to another’s trailer, even if it’s attached to your truck.
That’s when trailer Interchange insurance steps in. And that’s what this article is all about.
So what exactly is Trailer Interchange Insurance?
Before we dive head-first into discussing trailer interchange insurance, it’s essential that you understand what is meant by a trailer interchange agreement.
A trailer interchange agreement is an undertaking by one party to transport another’s cargo trailer to ensure that it reaches its destination. It usually forms part of a network of trailer interchanges that happen in different places to make sure that the cargo arrives on schedule.
So in this arrangement, the trailer attached to your truck is not your property. Since physical damage insurance only covers damage to property you own, you need trailer interchange insurance to cover the trailer separately.
Also, this commercial truck insurance covers damage incurred by the trailer whether or not it is attached to the truck at the time of the occurrence of the insured risk. So basically, it is like physical damage insurance, but for the property of others, that’s under your custody.
Advantages of Being Covered by Trailer Interchange Insurance
At this point, you now have a decent understanding of what trailer interchange insurance is. To drive the point further of the importance of this type of truck insurance, here are the advantages you can derive if you decide to be covered by trailer interchange insurance.
1. Protect Your Business
One of the biggest reasons why you need trailer interchange insurance is how it helps you protect your business.
Remember that insurance serves as a financial cushion in case your property is damaged due to an accident or similar risks insured against. But if the damage was incurred by someone else’s property under your custody, that’s a different story.
Unfortunately, the fact that it’s not yours meant that it is excluded from your physical damage insurance.
Thus, trailer interchange insurance saves your company from paying for said damages.
2. Protect Your Finances
Following the same principle, as stated above, this type of commercial truck insurance will also help protect your personal finances. If your business cannot fully pay for the amount of damages, you may be personally held liable to pay for it.
So with trailer interchange insurance, you don’t have to empty your pockets because of an accident or occurrence that’s beyond your control.
3. Improved Business Image
If you take out a trailer interchange insurance, it reflects your responsibility as a businessman. This gives customers the impression that you take your trucking business seriously – and that makes them trust you with their property.
In effect, these clients can recommend you to others who are also looking for trucking companies to haul their goods.
4. Peace of Mind
Trailer interchange insurance covers a wide variety of risks – not just damage to the trailer due to accidents. It can also cover damages due to vandalism, burglary, burning, or explosion.
While the coverage depends on what you and the insurance company agree on, knowing that it covers multiple unforeseen events already gives you peace of mind. That is why we strongly suggest obtaining one.
To conclude, trailer interchange insurance is a helpful coverage that could save you and your business from unimaginable financial losses. Not only will this ensure business continuity, but it will also attract more trailer interchange agreements in the future.
So if you’re in the business of hauling goods or cargo using another company’s trailer, this type of insurance should be your priority.
But we understand that looking through truck insurance policies can be overwhelming. Before you sign anything, it’s best to consult a trusted commercial truck insurance specialist first. These professionals will surely help you find the right coverage your company needs.
Here at Ace Insurance Commercial Center, we take pride in our Insurance Specialists who have advanced training in Risk Management. They are more than capable of helping you with all your truck insurance concerns. Trust us to help you protect your trucking business.