A standard reefer truck has either a built-in refrigeration system or a separate unit that may be attached to the trailer. Perishable commodities are kept at the proper temperature for the duration of the journey by refrigeration units. Including reefer breakdown coverage in your insurance plan will give you peace of mind if you frequently carry perishable goods.
Please note that refrigerated items require particular insurance coverage because they provide a larger risk than other forms of shipping.
The Risks of Operating a Reefer Unit
One of the biggest dangers of operating a reefer unit is that your unit can break down while it is on the road, causing your cargo to spoil. If you are not able to deliver a customer’s items securely, the financial loss and damaged reputation could be disastrous for your company.
Because of this concern, including having a vehicle collision, it is crucial to make sure your reefer truck is properly covered. You don’t want to find yourself in a situation where a reefer unit accident causes you to suffer a significant financial loss.
What is Reefer Breakdown Insurance Coverage?
Reefer Breakdown insurance shields the policyholder from lawsuits arising from refrigeration system failures that result in the spoiling of products being carried. Claims resulting from an unexpected mechanical failure or accident are covered under reefer breakdown coverage. However, most insurance policies don’t cover claims brought about by a driver’s negligence or tardiness.
Please note that policyholders that make use of refrigerated trailers benefit a great deal from this coverage.
How Much Does Reefer Breakdown Insurance Coverage Cost?
There is no fixed price when it comes to the cost of Reefer Breakdown insurance coverage. The location of the firm, its claim history, the number of years in operation, and the commodities hauled all affect the price of the reefer breakdown coverage.
Recommended Coverages You Need for a Reefer Truck
No two trucking businesses are the same. To be completely secured from dangers and accidents, you may need multiple coverages and levels of insurance depending on your reefer unit, service, and business requirements.
1. Auto Liability
If you’re at fault in an accident, auto liability insurance can shield your company by paying for your legal obligation to other drivers. The other driver’s medical costs will be covered under bodily injury liability coverage.
Even pain and suffering may be covered, in addition to a percentage of the other driver’s lost pay. The expenses related to fixing the other driver’s car will be covered under property damage liability. You should be aware that this insurance will only cover other drivers and not you or your reefer truck.
2. Physical Damage Coverage
Similar to full coverage auto insurance, physical damage coverage will enable you to quickly get your truck back on the road in the event of an accident. After an accident or collision with another object, your truck’s repairs will be covered under collision coverage. Repairing non-accident-related damages to your reefer truck will be made easier with comprehensive coverage.
3. Reefer Breakdown
Specialty foods like meats, seafood, and other things can be very expensive. Breakdown insurance is a type of cargo insurance that can protect your company’s finances in the event that the reefer breaks down and the load spoils. It is intended specifically for reefer trucks that transport pricey cargo.