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Reefer insurance purpose and its need:
What is the purpose of reefer insurance?
Reefer insurance is a group of insurance policies that protect yourself, your truck, your employees, 3rd parties from bad scenarios, and dangerous incidents.
Having a good insurance coverage that protects you from different scenarios is an important part of reefer operations.
Reefer insurance provides financial and legal protection for reefer owners and owner-operators. Accidents and events that cause bodily harm and injury are covered by reefer insurance.
The reefer insurance covers 3rd party injury, which is an important part of insurance coverage. This insurance also covers equipment and cargo damage. There is also insurance for workers' compensation and occupational accident insurance coverage.
Drivers and fleet owners are covered for theft, vandalism, and fire.
Reefer insurance workings
How does reefer insurance work?
Reefer insurance provides insurance coverage within the limits of the insurance policy. Reefer drivers and equipment are covered by the insurance. It also covers bodily injury and collision damage of 3rd parties. Reefer insurance also protects cargo or freight from damage.
Reefer insurance covers your equipment and tractor damage because of vandalism, and natural calamities, This insurance covers you for property theft-related events.
When an incident that needs reefer insurance coverage occurs the insurance company pays coverage within the limits of the insurance policy.
Insurance requirements for reefer owners and owner operators:
What are the requirements for reefer insurance?
Reefer truck business operating in the USA is subject to coverage limits set by Federal Motor Carrier Authority (FMCSA). Minimum coverage limits for reefers are set by FMCSA. The insurance limit is based on the distance hauled, the weight of the truck, and the cargo type carried.
Heavy trucks have big insurance requirements and premiums.
The below list summarises the federal minimum insurance requirements based on the type of cargo being transported
- General liability’s coverage limit is $1 million yearly premium paid is $700 to $7000.
- Trucking liability is 750,000 for interstate trucks and the yearly premium is $2,500 to $4,000 per tractor.
- Non trucking Liability has a coverage limit of 250,000, the yearly premium estimate is about $450 to $5,000 per tractor.
- Bobtail insurance has a coverage limit of $1000,000, the yearly premium estimate is about $350 to $450 per tractor.
- Physical Damage this coverage depends on the actual and stated value of the equipment, and the premium would range from 2% to 5% of the value of the truck
- Motor Truck Cargo coverage limit ranges from $20,000 and $100,000 in different US states, the yearly premium estimate is $500 to $1000
- Workers' Compensation depends on the cargo you are transporting, the yearly premium would be about $2500
- Occupational Accident insurance, depends on the load being carried yearly premium estimates range from $1600 to $2200.
Reefer insurance cost:
What are the insurance costs for reefer trucks?
Annual premiums for reefer insurance would be between $1000 and $10,000. Premium amounts are connected to factors like:
- Does your driver have clear driving records
- The load types you are carrying
- Value of the trailer or equipment
- The radius of your operation
- Coverage of your policy
- Limits of your policy
- The deductible you need to pay
- Your credit history
- Your payment plan
If you are looking for a low-priced reefer insurance policy you can compare and contrast policies on the internet using a tool like CoverWallet. As you can shop around with your insurance agent for a low limit, high deductible and bare minimum coverage policy.
If you get into an accident or a nightmare scenario a low limit or high deductible policy won’
