Trailer Interchange Insurance
Trailer Interchange insurance provides Physical Damage insurance for trailers being pulled under a trailer interchange agreement. This is essentially Physical Damage insurance for non-owned trailers. This insurance protects you if the trailer is damaged by collision, fire, theft, explosion or vandalism.
Since the exchanged trailers are not owned by you, they require separate insurance coverage because they are not covered under your regular Physical Damage insurance.
Who Needs Trailer Interchange Insurance?
If you have a trailer interchange agreement, you need Trailer Interchange insurance to protect you while you're in possession of a container or trailer that you don't own.
A trailer interchange agreement is a contract that arranges to transfer a trailer from one trucker to another in order to complete a shipment. Typically, the trucker in possession of the trailer is responsible for paying any damages that are incurred while they have the trailer.
A type of coverage available under either the truckers or the motor carrier policy form that covers the insured's legal liability for damage to the trailers of others. Coverage is also available, by endorsement, under the business auto policy (BAP). Motor carriers frequently haul trailers that are owned by other motor carriers. This is often done through a "trade" of trailers that are in different locations to facilitate scheduling. A trailer interchange agreement makes the motor carrier that has possession of the trailer responsible for any damage to the trailer, whether or not the trailer is attached to the tractor