It is fairly obvious to anyone working in the commercial truck industry that you need basic liability truck insurance coverage to protect others from your vehicle.
This helps to protect you from having to pay out of pocket in the event of an accident that harms anyone or anything on the road. Trucking companies are required by law to provide this type of commercial truck insurance coverage to all of their drivers as well as the independent haulers they employ.
What some people do not realize is that, often times, this policy does not extend protection to the trailer.
Trailer Interchange
The reason that some policies due not cover trailers is that these trailers are often swapped between haulers, with one driver finishing another's haul. This is done to save on fuel and other costs as part of an agreement between trucking companies. Typically, this leads to jobs being finished faster and more efficiently.
Trailers are oftentimes not even the property of the trucking company, switching around possession from the shipper to various freight companies.
Because of instances like this, it may be necessary to purchase a separate insurance policy, known as trailer interchange insurance.
In the same right, cargo insurance is a separate entity as well. Most of the time, shippers will have a truck insurance policy to protect their goods, though it is also common for trucking companies to carry goods in transit cargo insurance or something like a general freight policy for blanket coverage.
Trailer Interchange Insurance
This type of commercial truck insurance ensures that independents and large companies alike are covered when making interchange agreements with other companies or operators. It covers the driver or company in the event of an accident or damage to the other company or driver's goods.
Trailer interchange insurance is especially recommended for independent owner/operators because the cost of repairing or replacing another driver's trailer can be astronomical, and you want to be sure you are fully covered in such an event.
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