Intermodal & Drayage Insurance

Drayage is short miles and lots of stops, which sounds safe but is not priced that way. Port roads are crowded, turning a 40- or 53-foot chassis in tight terminals is hard, and containers are loaded by someone you never meet. Underwriters ask which ports or ramps you serve, your average trip length, how many loads a day a truck turns and whether you run any regional or long-haul moves.

They also want to know who owns the chassis. Some carriers pull pool chassis supplied at the terminal. Others own or lease their own chassis. That changes physical damage, trailer interchange and how a claim on the chassis is paid. Have a count of owned chassis with VINs ready, and a rough share of moves on pool or provider equipment.

Drivers are read closely. Carriers ask for motor vehicle records, years of commercial driving, and specific port or rail experience. High driver turnover, a lot of new drivers, or owner-operators leased on for short periods can make a fleet harder to place. Your FMCSA safety scores and inspection results, especially vehicle maintenance violations on chassis, are part of the file.

Drayage carriers moving general freight across state lines in a truck of 10,001 pounds or more need at least $750,000 of public liability under federal rules, and cannot operate until it is in place. The insurer's MCS-90 endorsement is one accepted form of proof. In practice the equipment interchange agreement and the customers you serve usually set a higher limit, so most drayage carriers carry $1,000,000.

Federal rules give the driver specific duties with intermodal equipment. Before taking the equipment over the road, the driver must inspect the parts listed in the rules, such as brakes, tires, lights and coupling devices, and be satisfied they are in good working order. When the equipment is returned, the driver or carrier must report any known damage, defects or deficiencies to the equipment provider.

Those two steps are also your best claim defense. A dated pre-trip and a return report show the condition of the chassis when it was in your hands. If a tire blows or a brake fails, those records help show who was responsible for the defect. Keep them with the trip paperwork, not only in the driver's phone. Photos of the chassis at pickup, with the date and the terminal in the frame, are also worth taking when something looks off.

Common drayage losses include low-speed crashes in terminal traffic, side-swipes while turning, chassis tire blowouts, overweight or badly loaded containers that shift and roll a truck, and damage to the container itself from a low clearance or a dock. Theft of loaded containers left in yards is another known risk, especially electronics, liquor and other high-value goods. Long waits at the gate add to it, because tired drivers and trucks parked on the street with a loaded box are both easier targets.

The biggest gap is equipment you do not own. Your physical damage covers your tractor. It does not cover a container or chassis owned by a steamship line or leasing company. That is what trailer interchange or non-owned trailer coverage is for. Check that the limit is high enough for the most expensive box you pull, including a refrigerated container.

Cargo forms can also surprise you. Many limit theft from an unattended vehicle, exclude some commodity types, or require an alarm or a secure yard. Ask your agent to read the exclusions with you before you take a high-value load or leave a box overnight. Matching what you haul to what the form covers is cheaper than finding out after a claim.

Send a full package: tractor list with VINs, any owned chassis, driver list with license numbers, three to five years of loss runs, your DOT and MC numbers, the ports and ramps you serve, and copies of the insurance requirements in your interchange and customer agreements. Underwriters move faster when they can see what limits you must show. If you also run regional or over-the-road loads, list the share of each so the carrier rates the whole operation correctly.

Show how you manage risk. Electronic logs, dash cameras, a written chassis inspection routine, and seal-number checks at pickup and delivery are all worth mentioning. If you track trucks by GPS or use a fenced yard for loaded containers, say so in the application. Describe how you hire drivers, how you check owner-operators before leasing them on, and how you handle a driver who gets a ticket or an out-of-service order. Underwriters read these answers closely in port work.

Start early. Port work often needs certificates naming several equipment providers, and each one may need specific wording. Begin 60 to 90 days before renewal so we can compare quotes from several carriers and confirm every certificate requirement is met before your current policy ends. If an equipment provider rejects a certificate, you cannot pull its boxes until it is fixed, so getting the wording right ahead of time keeps your trucks moving.