Trailer Interchange

Purchase Your Trailer Interchange Insurance Through A Managing General Agent, Wholesaler or Underwriter

Trailer Interchange insurance provides coverage for loss or damage to trailers not owned by the insured while in the insured’s possession under a written “trailer” or “equipment” interchange agreement in which insured assumes liability for loss to the trailer while in their possession.

Keep in mind that this coverage is most commonly connected to the intermodal container industry. Intermodal equipment consists mainly of a chassis, a box, and sometimes a refrigerator unit (all removable and interchangeable with one another). In the past these container units have almost exclusively been owned by either the railroads and or steamship lines. However, that trend is changing and there are companies that own and lease these containers out, (referred to as Equipment Providers).

Most trucking companies that operate as intermodal carriers often have no trailers, and often use only independent contractors as opposed to company equipment and company drivers. The trucking company is responsible for damage, however, to these containers while in their care, custody, and control. These trailers are constantly changing, there is no way one could schedule them on a policy and identify them by a V.I.N. Therefore, premium is calculated by the number of days that the trucking company would have a foreign trailer in its possession and how many foreign trailers would be in their possession at any one time.

The contract usually sets a limit of (i.e. $45,000) which would be the limit on all three pieces, but allowing for $15,000 for each component.

This coverage should not be confused with non owned trailer physical damage coverage, as Trailer Interchange Insurance only applies if an official Trailer Interchange agreements is in place and only to the equipment provider that has the agreement in place.

Non owned physical damage coverage provides similar coverage as Trailer interchange coverage, however, an official trailer interchange agreement does not have to be in place. This coverage is usually purchased by the trucking company to cover short term rental units and or units being used as temporary substitute vehicles while owned equipment is in for repair or maintenance. Non owned physical damage coverage is more commonly purchased by the for hire trucking company that is involved in a different segment of the trucking industry than Intermodal.