Do I need trailer interchange coverage on my policy?
This entirely depends on what shipping companies you plan to work with and whether you’ll be pulling your own trailers or the shipping companies. One of my appointed carriers, Great West Casualty, has some really great coverages for trailer interchange agreements.
Under a trailer interchange agreement, the shipping company’s coverage must be equal to your company’s coverage, as Physical Damage coverage will not apply while someone else is using the trailer. Coverage can apply on an excess basis. The coverage chosen should ideally equal the value of all the shipping units in the insured’s possession. The limits should include empty containers currently being held to return later.
Great West has two additional features on this endorsement:
- Option 1: Trailers can be interchanged based on an oral as well as a written agreement.
- Option 2: Trailer Interchange coverage can be made to apply on an excess basis as opposed to the more traditional primary basis. There is no difference in premium for this feature.
If your team needs assistance with your commercial truck insurance, safety programs, or establishing a good recordkeeping system, please contact the transportation insurance professionals at The Daniel & Henry Company today.