Refrigerated motor carriers must carefully vet their coverage based on the new FDA regulations and the commodity-based exposures. Reefer breakdown insurance protected against refrigerated cargo spoilage due to a mechanical or equipment failure or accident. This is not only a requirement to haul for most shippers or brokers, but provides the motor carrier with protection as equipment does fail.
Refrigerated truck insurance can present a challenge for motor carriers as many insurance companies do not like the exposure that comes with transporting perishables. The recent passing of the Food Safety Modernization Act by the FDA has presented new challenges to shippers, trucking companies, and brokers. The protocol takes the onus on when cargo was actually damaged and expands that to also include when it may have been adulterated. Shippers no longer have to prove damage and this has wide-ranging implications when you are purchasing reefer cargo insurance