Uninsured? What Mexican Border Freight Risks You’re Missing

Mexican border freight operations face unique insurance risks not fully addressed by standard domestic or contingent policies, according to Andy Kuchar, president of Centerline Insurance Company. With an estimated $420 billion in goods projected to cross the Laredo port in 2026, adequate coverage is crucial. Kuchar says brokers and shippers often rely on carriers' existing policies or contingent auto liability coverage, neither of which guarantees protection at the time of loss.

Carrier policies may not cover specific trailers, lapse due to missed payments, or lack verifiability in real time. Contingent policies introduce additional conditions that rarely trigger claims. Centerline offers per-shipment cargo coverage, which provides greater security and flexibility. For instance, a $500,000 load of flat-screen TVs moving from Dallas to Atlanta would need $400,000 in additional coverage from Centerline, costing around $80 to $100 per shipment.

In Mexico, Centerline structures coverage per shipper, with a $50 premium per $100,000 shipment, regardless of commodity. Mexican theft tends to be over-the-road hijacking, mitigated by toll roads, while U.S. losses stem from identity fraud. Centerline's policies avoid exclusions for unattended vehicles or employee theft, which can leave shippers without recourse.

Brokers and shippers should carefully review policy exclusions and conditions, as blanket voids can leave them unprotected. Centerline's trailer liability coverage saw a rise after the Montgomery ruling, emphasizing the need for brokers to understand the difference between transportation arrangement and trailer ownership or leasing. Contact Centerline through LinkedIn or their website for policy reviews.