The primary purpose of a truck insurance policy is to protect your business against a wide variety of threats. The same goes for refrigerated trucks. Reefer trucks facilitate in transporting perishable items that have to remain at a specific temperature to avoid spoilage.
A primary example here would be dairy and meat products, which tend to go bad within as little as two hours if they reach room temperature. Reefer trucks are of great use to local catering companies, meatpacking plants, and retail food warehouses.
Most importantly, reefer trucks are a large investment for trucking companies. This can be a highly profitable business; however, drivers require extensive knowledge and training regarding the safe transportation of perishable goods. One breakdown can mean you lose your whole load.
So, the best way to protect yourself is by purchasing reefer truck insurance. This truck type is often more expensive to insure than others due to the risks associated with transporting perishable items. You may even find that some insurance companies don’t want to insure you.
We understand how stressful it can be to find insurance for your reefer truck; however, we’re here to help. In this article, we’ll discuss the different coverages available for your refrigerated truck. Let’s begin.
Reefer Truck Insurance Coverages
Reefer trucks often need special coverage since regular truck insurance won’t cover spoiled perishables or broken down refrigerated units.
Here are some of the common coverages every reefer needs:
1. Auto Liability
Auto liability insurance is required by law so you must verify what the minimum required insurance amount is in your state. Keep in mind, this amount may vary depending on the type of commercial vehicle you drive.
This coverage protects your business from any liability claims in the event of an accident. There are two parts to this coverage: bodily injury and property damage.
With auto liability, the insurance company will pay to repair any property damage you cause in an accident. If the other party were to get injured then this would cover any legal fees or medical bills you’re responsible for.
2. Physical Damage
A reefer truck insurance policy also includes collision and comprehensive coverage. With the help of collision coverage, any damage done to your truck will be taken care of regardless of who’s at fault. For comprehensive coverage, any non-collision damage will be covered, such as flying objects, vandalism, theft, or fire.
1. Earned Freight
Earned freight coverage plays a vital role in lost income due to a covered cargo loss. This insurance coverage comes in very handy since the trucker essentially lost time and money transporting that load.
4. Reefer Breakdown
Mechanical breakdowns are inevitable and often result in unusable perishable items. So, if a refrigeration unit breaks down during transportation then this specialized reefer coverage will come in handy.
Successfully transporting items like pharmaceuticals, meat, dairy, fruits, and vegetables requires them to stay at their designated temperature. Since you’re depending on these units you need reefer breakdown coverage in case an unforeseen incident occurs.