Trailer Interchange
What is trailer interchange? Trailer interchange is an agreement where one carrier hauls a trailer owned by another carrier or shipper, with insurance covering damage to the borrowed trailer.
Full definition
Drop-and-hook, intermodal, and certain fleet-to-fleet handoffs all rely on trailer interchange. The carrier pulling a trailer they don't own must carry trailer interchange insurance to cover damage to the unit while in their possession.
Typical coverage is $20,000-$40,000 per trailer with a $1,000 deductible. Many insurance policies include trailer interchange automatically; some require a rider.
Without trailer interchange coverage, a carrier on the hook for a damaged borrowed trailer can face significant out-of-pocket exposure on a single incident.