This coverage protects trailers being towed under a trailer exchange contract from material damage. Non-owned trailers are covered by material loss insurance.
This coverage protects your trailer in the event of a crash, as well as damage caused by fire, explosion, or vandalism. It also protects you from flames. And because the mutual trailers are now yours, you can do anything you want with them.
Exceptions and Restrictions
The non-trucking Liability is a necessity for the independent owner-operator considering that the trailer is his or her livelihood. This is because he or she wants to have the trailer protected all the time.
If you have a permanent lease with a carrier and are not running the truck under dispatch, this coverage protects the truck in an infinite radius. This insurance coverage covers damages due to other people’s accidents or deaths, as well as property loss.
Physical Damage protection for trailers being pulled under a trailer interchange arrangement is provided by Trailer Interchange insurance. This is physical damage protection for trailers that are not leased. If your trailer is destroyed by a crash, fire, burglary, explosion, or vandalism, this insurance will cover you.
Since you do not own the traded trailers, they need special insurance coverage because they are not protected by your standard Physical Damage insurance.
If you have a trailer interchange policy, you’ll need Trailer Interchange protection to support yourself when in possession of a container or trailer that isn’t yours.
A trailer interchange agreement is a contract that specifies how a trailer will be transferred from one trucker to another to complete a shipment. Typically, the trucker in possession of the trailer is liable for any accidents that occur when the trailer is in his or her possession.
When buying Trailer Interchange insurance, you must choose a limit and a premium. If you use this coverage, the limit is a set amount that your insurance company can pay. The deductible is the portion of the cost of repairs or replacements that you would pay out of pocket.