Reefer Insurance

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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 is has a coverage limit of $1000,000, the yearly premium estimate is about $350 to $450 per tractor.
  • Physical Damage the 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 dollars
  • 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 insurance cost 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’t help you much. If you get into a bad scenario a big deductible policy will double your pain cause it will force you to pay the money fix your damages out of your pocket, thus burning a hole in it.

Insurance premiums are a big part of your trucking business’ overhead. As an owner operator or truck owner, you need to find an insurance company that provides comprehensive coverage with low premiums and reasonable deductibles. 

Factors that affect the cost of reefer Insurance policies:

What are the factors that affect the cost of reefer insurance?

You as an owner operator need to look for the best insurance that fulfills your search criteria. Cheap insurance is not always the best insurance. Insurance policy should cover you for mutiple adverse happenings. The cost of insurance for a particular owner operator is based on various factors like:

Factors that affect the insurance premiums:

  • Ownership status 
  • Cargo types
  • Freight weights 
  • The distance the load is hauled
  • Truck value
  • Type of physical damage
  • Driver or owner’s credit history 
  • Loss history
  • CDL and tracking experience 
  • Deductible amount 
  • Coverage limits 

Finding cheap reefer insurance:

How to find cheap reefer insurance?

Getting affordable reefer insurance is a tough net to crack, there are various factors you must consider to get cheap reefer insurance.

You need to know heavy loads mean bigger insurance premiums, the longer you haul bigger the insurance premiums. Plus if you haul dangerous cargo or sensitive cargo your premiums will go up.

Also, another factor is how new are you to trucking, New MC owners will be billed a high amount in premium, but veterans drivers will have a low premium. If you have a clean driving record you will get a lower net cost on insurance.

These are aspects that you should consider for getting a affordable reefer insurance:

  • Compare and contrast quotes from several insurance companies 
  • Ask for discounts
  • Pay your whole premium upfront
  • Get the right coverages
  • Increase your deductibles if you are prepared to pay them when you encounter an incident
  • Always be on the hunt for new Insurance

Reefer insurance protects your trucking business:

How does Reefer insurance protect you?

The reefer insurance you take depends on your status. Two statuses in a reefer business are a leased owner operator and an independent owner operator. Here, you need to understand that most of the leased owner operators' insurance needs are covered by their owners.

Most common types of truck insurance, what it covers, who need it:

General liability: This insurance covers 3rd party bodily harm and damage caused by your driver or equipment. This insurance is for motor carriers and drivers. 

Primary trucking lability: The coverage of this policy is for physical injury, bodily harm,and damage to drivers and equipment due to a bad trucking incident. This insurance is for motor carriers and drivers with authority. 

Nontrucking Liability: This covers #rd party damages when the reefer is made use for non-business purposes. This insurance is for drivers under the lease. 

Bobtail insurance: This covers the damages to your reefer due to theft, collision, vandalism and natural disaster. Drivers under a lease are whom this insurance is for.

Physical damage coverage: This insurance covers the damage to your cargo in transit. Owner operators and fleet owners must take this coverage.

Motor truck cargo insurance: This insurance covers the damage occurring to the shipment or cargo or freight due to fire. Collision and striking of a load. This insurance is for carriers who need to insure cargo or freight.

General liability: This insurance coverage is for 3rd party property damage and bodily caused by your driver or equipment. This insurance is for drivers with authority and motor carriers.

Primary trucking liability: This insurance covers property damage and bodily harm or physical injury to drivers due to a trucking incident. This is for drivers with authority and motor carriers. 

Non trucking liability: This insurance covers 3rd party damages when the truck is used for non trucking business purposes. This insurance is for drivers under a lease. 

Bobtail insurance: This insurance covers your truck for damages to your truck due to collision, theft, natural disaster, and vandalism. This insurance is for drivers under a lease.

Physical damage coverage: This insurance covers the damage occurring to your cargo that is being transported. Owner-operators and fleet owners should take this insurance. 

Motor truck cargo insurance: This covers the damage happening to your cargo or freight due to collision, fire, and striking of a load etc. The carrier who need to insure their freight or cargo should take this coverage.

Workers' compensation coverage: This insurance covers employees gettng it or injured while at work. This coverage helps employees to recoup their salaries and wages or get medical expenses paid after a work related accident or incident happens.

This insurance is for all trucking operations with employees.

Other insurance coverages reefer 

owners or owner operators should consider for extended converge is:

Occupational Accident Insurance Coverage (OAIC): 

OAIC provides a particular amount of coverage to employers and employees for job-related injuries. OAIC covers wages and salaries. IT also covers medical expenses and death benefits up to the policy limit. The special feature of this coverage is that reefer business can choose their deductible limit and the disability cover they want to buy,

Trailer Interchange Endorsement:

Trailer interchange endorsement provides coverage for 3rd party trailers pulled by your tractor or equipment. This protects you if the trailer is damaged by theft, vandalism, fire, explosion or collision, etc.

Hazmat Truck Insurance: 

As per the type of hazardous materials hauled, hazmat trucks are mandated by law to provide insurance liability from $1,000,000 to $5,000,000 per accident.

Trucking Umbrella Insurance:

Umbrella insurance acts as an umbrella of protection if you as an owner operator or reefer owner have some insurance coverage gaps. This insurance increases your liability coverage. 

Key issue here is which umbrella policy you are taking, some policies exclude key risks, so you need to read the contract to decide which policy to take.

Uninsured & Underinsured Coverage:

Uninsured motorist insurance protects the 3rd party when they are in an accident with an at-fault driver, who doesn’t carry the necessary liability insurance. 

Underinsured motorist coverage steps in when a 3rd party is in an accident with an at-fault driver, and the driver’s liability insurance is too low to cover the medical expenses of the injured people.

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