Tom's Blog
In the trucking industry, there are many circumstances that can occur when a carrier is transporting goods that are not clearly defined and may be confusing if you don’t know the facts surrounding the transport situation. Truckers use trailers belonging to other people every day to haul specifics to another location, but does your trucking business need trailer interchange or non-owned trailer insurance coverage when transporting goods?
Get the Coverage You Need
The terms “trailer interchange” and “non-owned trailer” often are used simultaneously, but there are differences between the two types of coverage and it is critical that everyone on board knows the differences. Getting the coverage your trucking business needs CAN be different than the coverage you have. There is nothing more distressing than finding out what you thought you had or needed for protection, has left you with a huge gap in coverage.
Before I outline the differences between the two different insurance coverage options, you need to know that your standard N.C. commercial auto liability insurance policy typically extends coverage to “non-owned” trailers while they are attached to your covered unit, but any damages to the “non-owned” trailer would be excluded. In order to add physical damage back to your N.C. commercial auto insurance policy for that trailer, you may either add a trailer interchange or non-owned trailer coverage option.
Trailer Interchange
Trailer interchange is a “written agreement” that is designed to provide third party liability protection for damages to a trailer while in possession of the insured, while hauling shipments to another trucker and/or destination. Three requirements must be in place (and in writing) for it to be considered a trailer interchange agreement. They are as follows:
- Outline Specific Points of Interchange With Another Trucker/Destination
- Specify How the Equipment/Trailer is Utilized
- Confirm Amount of Payment for the Business Performed
This agreement/protection ends upon the shipment reaching the final destination. By having this trailer interchange insurance, you would fill in any coverage gaps even when that trailer is disconnected from your covered unit.
Non-Owned Trailer Coverage
First of all, this coverage extends over a non-owned trailer while attached to the specified covered unit. The physical damage coverage can be clarified by scheduling that non-owned trailer with a maximum physical damage value. This way, nothing needs to be in writing between the shipper/carrier. Simply put, if no written agreement is in place, then you need non-owned trailer coverage. Although many unique circumstances may arise, feel free to contact your N.C. local independent insurance agent with any questions regarding any of these trucking insurance coverage options.
When in Doubt, Contact Us
Transport questions come up all the time in the trucking industry and we are here to help. When in doubt, contact our office at 866-869-3335 so we can help assist with what you specifically need in order to provide the needed protection on the road.
