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Reefer Breakdown Coverage &
Refrigerated Truck Insurance
If you're just looking for a few recommendations, here are our top picks for refrigerated cargo insurance.
Table of Contents
Reefer trucks are used to transport temperature-controlled commodities that generally pay better than hauling dry freight. However, refrigerated trucking also comes with additional expenses such as reefer insurance.
Since the Food Safety Modernization Act was passed by the FDA in 2011, there has been a greater focus on safety risks that can occur when food is not properly refrigerated.
While the Act was designed to reduce the spread of illness such as salmonella, reefer insurance rates have also gone up as stricter temperature controls are now in place for hauling refrigerated goods.
If you're just looking for a few recommendations, here are our top picks for refrigerated cargo insurance.
By clicking “Get Quote” or calling you will go to one of our insurance partners. The providers above may not be one of the providers in their network at this time.
What is Reefer Breakdown Coverage?
Reefer breakdown coverage is a cargo insurance endorsement that covers spoiled cargo should a refrigeration unit have a mechanical breakdown.
Reefer breakdown coverage does not typically cover refrigerated cargo spoilage from the following:
- Driver Negligence
- User Error
- Delays
- Other Incidents
Reefer breakdown insurance is different from broader “spoilage coverage,” which protects against cargo spoilage for any reason.
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Protect your truck with roadside assistance
- Free tractor and trailer towing up to 50 miles
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Reefer Breakdown Coverage Limits
While reefer breakdown coverage limits will vary depending on the policy, most shippers and brokers will require a minimum of $100,000 in cargo insurance coverage.
While a higher policy limit may seem better, it will come with higher premiums because the insurance company is taking on increased risk in the event of a claim.
Instead, it is better to select the lowest policy limit that still covers the maximum value of cargo being transported. This will save money on premiums while still providing full coverage if something goes wrong.
Common Exclusions
As covered earlier, reefer coverage only covers cargo spoilage from a refrigerated unit that fails. It doesn’t cover delays, user error, driver negligence, or other incidents.
Many basic policies will exclude certain items, so trucking companies should confirm with their insurance provider that the reefer endorsement covers the types of cargo they carry. These can usually still be insured, but it will cost extra.
Common exclusions in basic policies can include:
- Meat
- Seafood
- Pharmaceuticals
- Tobacco Products
Some insurance companies also try to avoid paying out claims with restrictive policies. Common tactics can include:
- Proof that the spoiled cargo is from the refrigeration system failing
- Not insuring spoilage by excluding specific parts of the refrigeration system such as sensors
- Excluding reefer units over a certain age
- Requiring that reefer units are regularly maintained with proper documentation
Reefer Breakdown Coverage Cost
Reefer breakdown coverage is usually included in a broader cargo insurance policy. For a reefer truck with a policy limit of $100,000, the cargo insurance premiums are typically $1,000-$2,000 per year.
Like all insurance policies, cargo insurance will vary widely by truck type, size, driver history, policy limit, deductible, cargo hauled, and area/range of service.
Cheap Reefer Coverage
Motor carriers should consider the following when looking for cheap reefer breakdown coverage:
- Opt for the lowest policy limit that still meets the requirements of the shippers/brokers and covers the value of the refrigerated cargo
- If a trucking company does not haul cargo that is commonly excluded, such as meat or medicine, then they should not opt for additional coverage on those items
- Opting for higher deductibles can also help carriers save on monthly premiums but trucking companies will pay more out of pocket in the event of a claim
- Some insurance providers will offer discounts if the annual premiums are paid upfront
Ultimately, shopping around and comparing quotes with multiple insurance providers is the best way to find cheap coverage.
Once a policy is in place, carriers can avoid expensive claims by maintaining refrigeration equipment with regular inspections. Keeping a maintenance and inspection log can also help if a claim does arise.
What Insurance Coverage is Mandatory for Reefer Trucking?
Refrigerated trucks will require the same basic truck insurance policies that are required for all commercial trucks. These policies include:
How to Find the Best Refrigerated Truck Insurance
Motor carriers looking for trucking insurance should look for providers and insurance agents that specialize in trucking and have specific experience with reefer cargo insurance.
Carriers should compare prices by getting quotes from multiple providers before making a final decision. However, it is important to note that the cheapest option is not always the best option. It’s important to research the reputation of insurance companies online before making a final decision.
The National Association of Insurance Commissioners keeps an online database of complaints, which helps make apple-to-apple comparison across providers. Google, Yelp, and the BBB can also be helpful but are easier for companies to manipulate.
Lastly, it is important to read the fine print and watch out for unreasonable exclusions that could prevent a successful claim.
By clicking “Get Quote” or calling you will go to one of our insurance partners. The providers above may not be one of the providers in their network at this time.
