Written by: Caleb Jackson T.R.I.P certified transportation insurance expert. Trucking Insurance can be complicated with different regulations. Since 2009 Caleb and his team have been working with truckers to secure the right coverage at the best price.

Keeping Cargo Cool with Barbee Jackson Insurance

Barbee Jackson Insurance is experts when it comes to trucking insurance with decades of experience in all types of commercial trucks. Refrigerated Trailers are a special class of trucking that requires not only driving skills, but also monitoring and quick fixes to the refrigeration unit. Reefer Breakdown is a highly specialized coverage that is designed to protect cargo that has spoiled due to a malfunction in the cooling equipment. 

Insurance companies that write this class of business have exclusions that only experienced trucking agents know and can advise you on how to avoid any pitfalls. Barbee Jackson Insurance not only understands Reefer Breakdown, but can also get you the best price. Call today to get started (850) 389-2001 (Spanish speaking agents are available) 

⭐⭐⭐⭐⭐Seif Jaber “Tyler was awesome, he got us quoted in no time, great service definitely recommend”

Texas Insurance Requirements

Texas Department of Motor Vehicles (TxDMV) is the regulatory agency that handles commercial vehicles with a gross vehicle weight rating (GVWR) of 26,000 lbs and more. If you run intrastate only, meaning you only operate inside the state lines of Texas, you are only required to carry $500,000 in auto liability.

If you cross state lines you are classified as an interstate trucker and are governed by the Federal Motor Carrier Safety Administration (FMCSA). The insurance requirements for auto liability is $750,000 and must have an active Motor Carrier (MC) number along with a DOT number.

Understanding Reefer Breakdown 

Refrigerated trailers have a special coverage for the cargo referred to as Reefer Breakdown. Reefer Breakdown is coverage for a mechanical failure of the unit causing the cooling unit to malfunction damaging the cargo. The most common cargo carried in these types of units is consumer groceries such as milk, eggs, meat, seafood, agriculture and pharmaceutical goods.
What is covered
Spoilage of Cargo resulting from a Malfunction of the Refrigeration Unit - If you are running refrigerated cargo in Texas mechanical failure is a major concern. Texas is one of the hottest states and cargo can spoil fast in the heat. It is important that you keep a maintenance plan and document all the work performed on the trailer. This should be done at least bi-weekly and we have trucking operations that perform these tasks daily to avoid any costly claim.
Emergency Load Transfer - If your unit experiences a malfunction some insurance companies will offer financial relief to transfer the load from one unit to another unit in order to save the cargo.
Cargo Loss - If the cargo is lost the insurance company will pay up to policy limits for the cargo that was hauled.
What is not Covered
Unit Repairs - Repairing the unit or maintenance is not covered by the policy. It only covers the cargo.
Driver Negligence - If the driver fails to turn the unit on this would not be a covered loss. That is why it is important to do a pre-check before hauling the cargo.
Loading and Unloading - loading and unloading of the cargo is not covered.

Trailer Interchange

The most common coverage (other than Reefer breakdown) chosen by truckers that haul refrigerated goods is trailer interchange. Most refrigerated goods are packed by a distributor then picked up by the driver. Since they don’t own the trailer, coverage for the trailer is covered by trailer interchange. Trailer coverage starts at $10,000 and up to $100,000.

It is important that you perform a safety check and pre-inspection of the refrigerated unit to make sure that everything is in good working order.

How much is Reefer Breakdown?

Reefer breakdown in Texas is a little more costly due to the extreme heat with a higher chance that the unit will fail. Most Reefer breakdown coverage can be purchased for around $11,000 per year with a cargo limit of $50,000.

💡Caleb’s Pro Tip - $50,000 in cargo coverage is low in this day of age. We recommend limits starting at $100,000. The increased cost is less than if you were to have a load spoil that you did not have the proper amount of cargo coverage.

“Barbee Jackson Insurance is passionate and professional with their customers. They take the time to hear what you want and need so you can get the best protection for your business.” ⭐⭐⭐⭐⭐Falisha Stewart

Other Coverage Options

Physical Damage - Comprehensive and collision coverage for your rig
Bobtail/Non-Trucking Liability - Auto liability insurance when not on dispatch
Medical Payments - Medical payments for injured driver and passenger in the event of an accident
Workers Compensation - Medical and benefits for workers injured on the job.

Frequently Asked Questions

Can I buy a standalone Reefer Breakdown policy?
No, it is an endorsement onto the commercial trucking insurance policy.
All refrigerated cargo is covered under reefer breakdown?
No, earlier on this page we pointed out that some policies have exclusions and that’s why you need to work with an experienced agency that knows the exclusions and can help you avoid a costly mistake. For example, some insurance companies that offer reefer breakdown, but they will exclude coverage for meat and seafood.
What is the most common claim?
The most common would be driver negligence, such as not turning the unit on. This is not a covered loss, so we always recommend a pre-check prior to moving the load.
What is the standard deductible?
Cargo has a standard deductible of $1,000. Higher deductibles are available and will decrease the cost of the insurance.
Do you insure first year operations?
Yes, our experienced agents are happy to work with you to find the coverage and price that you can afford.

Call Barbee Jackson Insurance today to get started (850) 389-2001