Insurance policies can be convoluted and difficult to understand, especially if, like most of us, you are not well versed in legal language. However, it is crucial that carrier companies read and understand their insurance policy in order to be aware of what they are covered for. The “exclusions” portion of any policy is one of the most important sections since it will let you know what your policy does not cover.
Common examples of EXCLUSIONS in insurance policies are the following:
Ø Theft of tractor/trailer from an unsecured/non-gated/unmonitored area.
Ø Reefer breakdown on trailers that are more than 10 years old, regardless of if your coverage includes reefer breakdown.
Ø Failure to maintain proper temperature unless the failure is caused by or results from fire, lightening, explosion, collision, overturn, “schedule vehicle” of flood, meaning the rising of any natural body of water (this indicates that reefer mechanical breakdown will not be covered).
Common Insurance Statements
Whatever the exclusions or conditions of the insurance policy that a carrier signs up for, most will always state the following:
“The insured warrants that the refrigeration equipment will be:
A. Maintained at all times in accordance with the manufacturers specifications; and
B. Be fully inspected at least every three months by you or a facility approved by the manufacturer. Records of these inspections must be maintained and be made available for inspection.
The insured acknowledges that there will be no coverage under this endorsement if the insured fails to comply with the above warranty’s or cannot produce records of inspections.”
Knowledge is power, and protection!
If you are unsure of what your policy covers you for and what it excludes, please feel free to send it to United World Cargo; we can review the policy and advise accordingly. It is in everyone’s best interest that we understand what we are protected and covered for!! Send it to our toll free fax number: 1.866.986.7401!!
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