Trailer Interchange Coverage for Non-Owned Trailers

Trailer interchange coverage may protect a motor carrier against covered physical damage to a non-owned trailer while the trailer is in the carrier’s possession under a written trailer interchange agreement. It is different from liability coverage and from physical damage coverage on trailers the business owns.

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What trailer interchange coverage may address

Physical damage to a non-owned trailer

Subject to the policy, covered causes of loss may include collision, theft, fire, vandalism or other specified events affecting an eligible trailer in the insured’s possession.

Written interchange agreements

Coverage commonly depends on a written agreement under which the carrier assumes responsibility for the trailer. The contract should be provided for review.

Limits and deductibles

The selected limit should reflect the highest trailer value or contractual requirement the operation expects to assume. Deductibles, exclusions and valuation provisions vary.

Trailer interchange versus non-owned trailer coverage

The correct form can depend on whether a written interchange agreement exists and how the trailer is obtained and used. An insurance professional should review the actual arrangement.

Who may need trailer interchange insurance?

Motor carriers pulling trailers owned by shippers or other carriers
Fleets participating in drop-and-hook operations
Port, rail and intermodal carriers
Carriers operating under written equipment-interchange agreements
Owner-operators temporarily responsible for non-owned trailers

Common eligibility and underwriting factors

Written interchange agreements and contractual obligations
Maximum number and value of trailers in the carrier’s possession
Trailer types, ages and typical condition
Operating radius, terminals, yards and overnight parking
Driver experience and safety history
Theft controls, inspection procedures and loss history
Requested limit and deductible

Information commonly requested

Copy of the trailer interchange agreement
Maximum trailer value and number of trailers in possession
Trailer types and typical usage
Routes, radius and storage locations
Driver and vehicle schedules
Current policy and loss runs when available
Contract-required limits and additional insured requirements

Frequently asked questions

Is trailer interchange coverage the same as cargo insurance?

No. Trailer interchange generally concerns covered damage to an eligible non-owned trailer. Motor truck cargo insurance concerns eligible property being transported.

Do I need a written trailer interchange agreement?

Many trailer interchange forms contemplate a written agreement, but policy requirements vary. Provide the actual arrangement for review.

How much trailer interchange coverage should I carry?

The limit should be evaluated against trailer values, the maximum number in your possession and contractual requirements. The insurer must approve the requested limit.

Does it cover a trailer I own?

Owned trailers are generally addressed through scheduled physical damage coverage, not trailer interchange coverage.

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