Trailer Insurance Gaps: 3 Critical Red Flags Supply Chain Teams Miss

Trailer insurance represents a critical but often overlooked vulnerability in the supply chain ecosystem. Andy Kuchar of Centerline Insurance identifies three major warning signs that companies may be operating with dangerous coverage gaps: relying on third-party insurance policies, holding contingent coverage with broad exclusions, and lacking dedicated trailer-specific protection. The risk is particularly acute in freight brokerage, trailer leasing, and motor carrier operations where equipment moves between multiple parties. The post-Montgomery ruling environment has significantly expanded liability exposure for organizations that place equipment with carriers.

What makes this especially problematic is that only 30% of motor carriers carry trailer interchange coverage, leaving trailer owners and brokers vulnerable when incidents occur. Defense costs alone, typically $1,100 per hour through outside counsel, can reach six figures per claim even when the policyholder had no operational involvement in an accident. This structural gap affects thousands of companies across North America operating under false assumptions about asset protection. For supply chain professionals, the implications are substantial.

Organizations that lease trailers to carriers, manage trailer pools, or coordinate equipment repositioning need to conduct immediate policy audits. The article suggests that many companies face exposure comparable to the liability scrutiny freight brokers now face post-Montgomery, making dedicated trailer coverage increasingly essential rather than optional. Delaying this risk assessment could expose companies to catastrophic uninsured losses.