April 23, 2024
Intermodal Insurance
Insurance for trucking companies hauling containers is unique and working with a specialist is a must. Reliance Partners has several programs focused around intermodal coverage. It is common to see motor carriers who haul containers lease the intermodal chassis while they may own the actual tractor.
Motor carriers who haul containers are generally required to purchase UIIA (Uniform Intermodal Interchange and Facilities Access Agreement). If this is not purchased then a motor carrier will not be allowed into a port or rail yard. Carriers must also generally purchase hired and non-owned insurance since they typically lease the chassis. Trailer interchange coverage must be purchased as well to protect against physical damage of the containers being transported.
‘Intermodal freight transport’ refers to the transporting of freight via an intermodal vehicle/container using more than one mode of transportation: ship, rail, and truck. Most often, this freight is made up of large-scale boxes that are stacked on trains or boats and brought to their locations via trucks. Through this process, the freight is not actually handled when it is changing modes as it remains enclosed in the intermodal transport container. One of the benefits to this type of transport is that it is highly secure as once the freight is loaded into the container, it does not change hands. It also minimizes loss and damage and allows for faster freight transport. While road transport with trucks is a lengthier mode of transport, it does come with a lower overhead cost.
Trucking companies that are hauling containers have special insurance needs that revolve around intermodal coverage. Many motor carriers lease the intermodal chassis while owning the tractor; in these instances, the motor carrier is required to purchase Uniform Intermodal Interchange and Facilities Access Agreement (UIIIA). If a motor carrier tries to enter a rail yard or port without the agreement, they are likely to be denied entry.
Most often, carriers are also required to purchase non-owned and hired insurance if they lease the chassis. Trailer interchange coverage is also required to guard against any damage to the containers like cracks, chips, dents and breaks that can occur during transport.
Different Insurance Types
The trucking industry is vast and multi-faceted with a multitude of different types of trucks, drivers, companies, destinations, and cargo; as such, there are just as many different types of insurance from trucking programs to freight broker insurance and commercial insurance to help minimize the risk and exposure that trucking companies and their drivers are faced with.
Trucking Programs
Trucking insurance companies offer a number of insurance programs that cover all different risk profiles such as high-risk, new-venture, and owner-operator programs. There are also a number of niche insurance programs that target specific products such as bulk haulers, box trucks, container haulers, dump operations, hazmat carriers, couriers, hot shot’s, tow-truck operations, LTL trucking companies, and warehouse operations.
Freight Broker Insurance
There are most definitely challenges associated with managing risk associated with freight brokerage operation in the industry. Insurance companies offer customized products to satisfy the needs of individual 3PLs.
The types of auto liability coverages available to freight brokerages differ greatly. From primary auto liability to freight broker liability and contingent auto liability, freight brokerages should conduct their own due diligence to ensure they fully understand the contractual obligations and any inherent risk associated with them.
Motor truck cargo options regarding cargo claims can be a challenge for freight brokers. Risk assessment and exposure must be a part of the insurance and protection process for 3PL’s. Contingent motor truck cargo is a basic form of coverage to be wary of as it is most often presented and written as a follow-form which not only excludes the carrier’s can but can also indicate a risky exclusion in their own policy. To counteract this risk, it is advised that freight brokers should purchase broader forms for their 3PL’s to provide thorough coverage on a dollar basis under the umbrella of legal liability.
Commercial Insurance
The world of business insurance is a complicated one with lots of bases to cover and a lot of risks, which is why it’s important to have an insurance company advocating for you. An independent agency that has access to many carriers is a good choice for adding value to your insurance requirements.
Finding business coverage for the lowest possible price shouldn’t be the main priority; you also want to find a comprehensive plan that meets all of your business needs and covers all the risk and exposure your business faces. Most insurance companies offer a free quote so you can ascertain which, if any, of their plans, are best for you, their cost, and if they fit into your budget.
While insurance packages for businesses vary on a case-by-case basis, there are some basic requirements that most packages meet: general liability, workers compensation, business auto, cyber liability, business owners policy, excess liability, human resource technology, garage keepers liability, liquor liability, commercial property insurance, employment practices liability, errors and omissions insurance, fiduciary liability, and group health. These requirements represent the types of situations that businesses are most likely to find themselves in at one point or another.
Intermodal transport has a far-reaching history that extends back to the 18th century before the establishment of railways. What started with open containers for transporting coal evolved to covered wooden containers in the 1900s. Currently, super durable intermodal containers are most often made from metal with an impressive 10-15 year lifespan. When it comes to intermodal transport, there are numerous types from trucking programs, freight broker and commercial insurance.
