How Does Trailer Interchange Coverage Protect a Chassis?
The Tractor and the Chassis Are Different Property Exposures
Physical damage on the power unit does not automatically mean every chassis or trailer attached to it is insured for physical damage.
Protects the Insured Power Unit
When comprehensive and collision coverage are purchased, physical damage may protect the insured tractor against qualifying losses, subject to the policy terms.
May Protect Qualifying Non-Owned Equipment
Trailer interchange coverage may help address physical damage to qualifying non-owned trailers or chassis in the carrier’s possession under a covered interchange agreement.
Why Does a Chassis Create a Separate Insurance Concern?
An intermodal motor carrier may take possession of a chassis at a terminal, rail yard, port, or other interchange point and remain responsible for that equipment until it is properly returned.
A chassis or non-owned trailer may be damaged in a collision while attached to the carrier’s tractor.
Depending on the coverage form, theft or vandalism involving qualifying non-owned equipment may also be an exposure to review.
Equipment can be damaged while being maneuvered, parked, staged, or handled at a terminal, warehouse, or other location.
The written interchange agreement can help determine when the carrier accepts responsibility for the equipment and when that responsibility ends.
What Should an Intermodal Carrier Review?
Trailer interchange limits should be compared with the actual non-owned chassis and trailers the company uses and the requirements of the equipment providers involved.
Equipment Values
Consider the replacement or repair value of the chassis and trailers the company may have in its possession.
Interchange Agreements
Review the agreements governing the equipment to understand responsibility, required insurance, and any applicable limits.
Covered Equipment
Confirm whether the policy definition includes the chassis, trailers, or other equipment the company actually interchanges.
Deductibles & Causes of Loss
Review collision, comprehensive-type causes of loss, deductibles, exclusions, and any restrictions affecting non-owned equipment.
Does Your Policy Protect the Chassis and Trailers You Use?
Best Formula Insurance can help intermodal motor carriers review trailer interchange coverage, chassis exposure, tractor physical damage, equipment-provider requirements, deductibles, limits, and other transportation insurance needs.