Trailer Interchange Insurance from Massachusetts Specialists

What is trailer interchange insurance?

Towing other business’s trailers comes with inherent risk, as the other business might seek compensation if its trailer is damaged or lost in transit. This is where trailer interchange insurance can help, as it generally gives Massachusetts businesses that use non-owned trailers protection against such risk.

Trailer interchange insurance provides specialized coverage for trailers that a business doesn’t own. It might protect against damage and loss when using others’ trailers.

Which Massachusetts businesses does non-owned trailer coverage make sense for?

Massachusetts businesses may need non-owned trailer coverage if they haul with another business’s trailers. Coverage is often purchased when pulling customers’, borrowed or rented trailers. Short-haul transporters, long-haul freight transporters, distributors, wholesalers and a variety of other companies might get a policy.

What incidents does non-owned trailer insurance cover?

The protections afforded by non-owned trailer coverage can vary, but they often extend to events such as:

• Collisions
• Theft
• Vandalism
• Explosion
• Fire
• Smoke
• Other specified events

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Do comprehensive and physical damage coverages apply to unowned trailers?

Comprehensive coverage and physical damage coverage primarily insure against damage that a business’s owned trucks and trailers could sustain. These coverages normally don’t apply to trailers that a business uses but doesn’t own. If towing unowned trailers, non-owned trailer coverage is likely needed.

Do non-owned trailer policies give protection when trailers are parked?

Non-owned trailer policies normally insure against damage that occurs anytime during transit. This includes when driving, but it also typically includes when drivers stop for fuel, meals or required downtime. Many policies even offer coverage for overnight stops, although businesses should confirm that overnights are covered by a particular policy.

In general, coverage applies when trailers are towed, connected to a parked truck, disconnected from a truck, and being loaded or unloaded. An insurance agent who specializes in non-owned trailer policies can help make sure a particular policy will provide coverage for how a business uses unowned trailers.

Is cargo covered by non-owned trailer policies?

Most commercial truck policies separate out coverage for the equipment and for the cargo. Non-owned trailer policies are no different. They usually don’t apply to any cargo that’s lost or damaged. Instead, businesses might get separate coverage for the goods or materials they transport. 

Non-owned trailer coverage and any cargo coverage can usually be combined in a single policy.

Can non-owned trailer policies cover more than one trailer?

It’s usually easy to set up a non-owned trailer policy so that it covers multiple trailers. Policies may cover one, several or many trailers that a business doesn’t own.

Do non-owned trailer policies cover interstate and international routes?

Interstate coverage, within the continental U.S., is generally a standard feature of non-owned trailer coverage. While there could be a few exceptions, the vast majority of policies will cover unowned trailers anywhere they’re driven within the lower 48.

Coverage for international driving, such as to Canada, is less standard. While this is readily available, ensuring that international driving is covered requires checking a policy’s specific terms. A knowledgeable insurance agent can help with checking a policy.

How much does insuring unowned trailers against damage cost?

The cost of insuring unowned trailers with a non-owned trailer policy varies. Some of the details that impact cost include:

• Number of trailers
• Types and sizes of trailers
• Transport routes
• Interchange agreements
• Any recent claims

An independent insurance agent, who can compare coverage options from several insurers, can check how much a business would pay to insure the trailers it uses.