Doing Business Responsibly. Trailer Interchange Insurance in Oregon
Businesses like working with businesses they can rely on. If your client can't rely on you, they will most probably start looking elsewhere, searching for other partners. As a business owner or an independent truck driver in Oregon, this is the last thing you want on your mind. Acquiring trailer interchange insurance to back up some portion of your transfers will reassure your clients that you mean serious business. Having a strong Plan B like this means you take your client's happiness as a priority and don't intend to tarnish it. So, let's get into details and find out what exactly trailer interchange insurance plan covers.
What Does Trailer Interchange Mean, Anyway?
If you do business by pulling trailers under a trailer interchange agreement, this case is about you. In simpler terms, this plan acts as a Physical Damage coverage for every trailer that you use in your business operations but do not own. The plan kicks in when and if the trailer you're pulling, but do not own, is damaged by collision, fire, vandalism, or explosion. The coverage is active until the point where it is handed over to the client or another truck operator. In this case, the next operator must own the same insurance to carry out its own task without painful emergencies.
Trailer Interchange Insurance is Important
According to the agreement you have with your client, you will be responsible for any damage to the trailer or the container while it is in your possession.
For instance, if your truck driver stepped out of the vehicle to get lunch and the trailer is stolen, you will have to compensate not only the actual cost of the trailer and the cargo it contained but also any financial loss your client will have because of the accident. This means that while you don't own it, you'll have to pay the cost if it doesn't reach the destination unharmed. Depending on the type of trailer you're transporting and the occurring accident, the costs may be extremely high. As a business, it does make more sense to prepare yourself for such cases beforehand, rather than go into lawsuits or pay endless client bills.
Remember that compensation will always be transferred after deductibles have been paid by the insured. In case costs exceed your limits, the difference will be paid by you. This is why it is important that you evaluate your trucks before agreeing on a limit. You will pay high deductibles if the trucks or trailers cost less than your limit. Likewise, if you set a low limit but your trucks cost more, you will end up making additional payments, apart from the deductibles. The average limit is $20,000-$30,000. Interested to talk in examples? Bring over the evaluation of your trucks and trailers, and our agents will customize an insurance plan that works for your business.
Not to mention, the relationship with your client will also suffer if you’re forced to pay for the damage out of your own pocket.
A Closer Look: Limits And Deductibles
Since insurance is mostly a number's game, it's important to set the right limits and know your math before you sign any papers. Our team of dedicated insurance agents will, of course, run you through the process and help you understand your business needs in numbers. But do keep in mind that you will be asked to select a limit and a deductible. The limit is the amount of money the insurance provider pays your client if a trailer interchange damage occurs.
The deductible is the amount of money that you will have to add to the insurance money to complete the bill. So, make sure you know the exact cost of the trailers you transfer. If your set limit is lower than the actual cost of the trailer, you will end up paying more in deductibles. If your insurance limit matches the trailer cost or is higher, the insurance provider will cover the entire cost of repair or replacement.
Now, chances are you'll have a harder time closing clients who find out that you don't have a proper trailer interchange insurance. So, it's not just about security on the road, it's also about taking the right steps to grow your business and increase your reach. Think smart, call our team today to receive more information about trailer interchange insurance packages available in Oregon.