Refrigerated freight insurance is specifically designed to address the unique risks associated with hauling perishable goods in refrigerated trucks, also known as reefers. These policies typically include coverage for reefer breakdowns, spoilage, and other risks inherent to transporting temperature-sensitive cargo. Here are some key points about refrigerated truck insurance:
Common Risks: Refrigerated trucking involves risks such as reefer breakdowns, spoilage of perishable goods, and collisions. These risks can result in financial losses for trucking companies if not adequately covered by insurance.
Reefer Breakdown Coverage: Refrigerated truck insurance commonly includes coverage for reefer breakdowns, also known as reefer insurance or reefer breakdown insurance. This coverage protects against spoiled cargo resulting from mechanical breakdowns or accidents that cause the refrigeration unit to fail.
Policy Exclusions: It's essential to review the fine print of your refrigerated cargo policy to understand any exclusions. Some policies may exclude certain types of cargo, such as seafood, meats, tobacco products, or pharmaceuticals. Knowing these exclusions can help you ensure that you're adequately covered for the types of cargo you haul.
Reducing Insurance Costs: There are several ways to reduce the cost of refrigerated truck insurance, such as choosing the right coverage limits and coverages tailored to your cargo. Paying in advance or maintaining a good credit score can also help lower premiums.
Increased Insurance Costs: The cost of refrigerated truck insurance has risen in recent years due to factors such as the Food Safety Modernization Act and proposed regulations. Despite higher insurance costs, hauling refrigerated cargo can be lucrative, especially when properly insured against potential losses.
Regular Maintenance: Insurers often require regular inspection and maintenance of refrigeration units to ensure proper functioning and minimize the risk of cargo spoilage. Failure to adhere to these requirements could result in coverage disputes if cargo spoilage occurs.
Overall, refrigerated freight insurance is essential for trucking companies engaged in hauling perishable goods. By understanding the risks involved and selecting the right coverage options, trucking companies can protect themselves against financial losses resulting from reefer breakdowns, spoilage, and other hazards associated with refrigerated trucking.