Freight Brokers: Your Trailer Insurance Has HUGE Gaps!

Trailer insurance for freight brokers often contains significant gaps, leaving their fleets exposed to substantial risks, according to Andy Kuchar, President of Centerline Insurance Company. Kuchar explained that many trailer policies have specific exclusions for over-the-road coverage, meaning brokers may believe their trailers are fully insured when they are not.

He cited a case where a broker believed its policy provided comprehensive coverage, yet the policy had glaring omissions. Kuchar emphasized the importance of brokers questioning their insurance agents to uncover these gaps and ensure adequate protection. The legal landscape for brokers has shifted following the post-Montgomery rulings, wherein plaintiffs' attorneys are increasingly targeting brokers due to their deeper financial resources.

This shift has heightened the need for comprehensive trailer liability coverage. Centerline has recognized this need and recently signed master trailer-liability programs with several leasing companies. The firm now offers specialized trailer liability coverage for freight brokers leasing trailers, transportation firms operating multiple business arms, and leasing companies themselves.

Kuchar highlighted two key red flags in existing coverage: policies using the term "contingent," and reliance on a motor carrier's certificate of insurance, which does not confer any rights to the certificate holder. He stressed that even small property-damage claims can escalate into significant bodily injury payouts, making trailer liability coverage a critical component of a broker's risk management strategy.