Written by: Caleb Jackson, Transportation Risk Insurance Professional at Barbee Jackson Insurance. Knowing the ins-and-out of Intermodal insurance is a must, there are a set of rules and regulations that govern the ports and rail yards. Work with the experts.

Keeping the Country Moving with Intermodal Trucking

If you are working in a rail yard or a port then Uniform Intermodal Interchange and Facilities Access Agreement (UIIA) sets the standards for the required insurance. Without the proper insurance and Certificate of Insurance (COI) you will not be able to enter or haul any container. Don’t get turned away at the gate…work with the experts that will get you the right coverage at the best price. Call today to get started (850) 389-2001 (Spanish speaking associates are available)

What is UIIA

The Intermodal Association of North America (IANA) is a private industry run trade association that came up with the standardized legal agreement for ports and rail yards and administers the UIIA. It is not a legal governing body like the FMCSA or state DOT. It owns and manages the UIIA contract allowing participating companies to sign one agreement instead of negotiating separate contracts for each port, rail yard or leasing company.

The IANA also runs the insurance verification system where agencies submit proof of insurance using an ACORD 22 Certificate of Insurance directly to the IANA. From there they verify that all insurance requirements have been met. Failure to comply with the insurance requirements will result in not getting access to the yards or ports.

💡Caleb’s Pro Tip - As you can tell this is a very complicated process. That is why you need to work with an insurance agency that understands the rules and regulations. Most insurance agents simply don’t have the understanding of UIIA. 

UIIA Insurance Requirements for Trucking

There are five coverages that are a must…In addition there is a hold harmless endorsement (UIIE-1) that must be added to the auto liability.

1. Auto Liability - $1,000,000 in combined single limit (CSL) auto liability. The COI also must be marked as “Any Auto”, “Scheduled and Hired”, or “All Owned and Hired”.
2. Hired Auto - Hired auto covers leased or borrowed equipment and vehicles
3. General Liability - General Liability is required to the unique risk of working around other people and equipment. They require $1,000,000 per occurrence and $2,000,000 aggregate
4. Cargo - Depending on  the equipment provider you may be required to carry cargo insurance. Limits start as low as $10,000.
5. Trailer Interchange - Trailer interchange is coverage for a non-owned trailer or chassis that you are pulling with your rig. The Equipment Provider will determine how much coverage is required while the unit is in your care, custody and control.

Hold Harmless Endorsement

The required UIIE-1 hold harmless agreement is where a lot of agencies get wrong when writing your policy. It is required endorsement to the UIIA. What it says is the Equipment Provider will not be brought into any litigation even if the Equipment Provider is liable. It defends the Equipment Provider in three ways:

• Defend - In the event of a claim or lawsuit your insurance company agrees to defend the Equipment Provider
• Indemnify - Covers the Equipment Provider over financial loss over the claim or lawsuit
• Harmless - The Equipment Provider is protected even if the provider has some fault in the incident 

For example - you are at the Port of Savannah and pick up a trailer that you don’t own, but is in your care, custody and control (trailer interchange coverage). In the course of business a trailer wheel comes off resulting in damaging other equipment in the yard. Your insurance policy will be primary and the Equipment Provider will not be held negligent.

Insurance Costs

Insurance costs even with the amount of coverage required is relatively low compared to long haul trucking. In most cases this type of operation has a low radius of operation and some don’t leave the port or yard. The auto liability, trailer interchange, cargo and required endorsements for well established business will run about $5,600 - $8,000 per unit. The general liability policy will run an additional $1,200 and sometimes can be added to the auto liability policy.

Frequently Asked Questions 

What happens if my UIIA policy lapses?
The IANA is strict when it comes to verifying insurance coverage. If the policy lapses or you fail to renew the policy you will not be allowed to enter the gates. There is no grace period. 
I own a small fleet and I’m thinking about becoming UIIA compliant. Is this coverage just good for large scale trucking operations?
No, many small fleets and owner operators work at these facilities. The coverage requirements are strict, but due to the high demand for drivers this is a great business opportunity.
My Equipment Provider does not require cargo insurance. Am I still required to carry cargo insurance?
No, if it is not required then you do not need to add the coverage. Cargo coverage can be added at any time to the policy.
I want to run Reefer in the Port of Miami. Is that allowed?
Yes, many of our clients run reefer for cruise ships. You will just be required to add reefer breakdown to the policy in the event of mechanical breakdown to the unit.