Reefer Breakdown Coverage & Refrigerated Truck Insurance

Reefer breakdown coverage is a cargo insurance endorsement that covers spoiled cargo should a refrigeration unit have a mechanical breakdown.

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Reefer breakdown coverage does not typically cover refrigerated cargo spoilage from the following:

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• Driver Negligence
• User Error
• Delays
• Other Incidents

Reefer breakdown insurance is different from broader “spoilage coverage,” which protects against cargo spoilage for any reason.

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Reefer Coverage is an endorsement that is added onto a motor truck cargo insurance policy. 

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While cargo insurance can come as a standalone policy, most carriers include it as part of a complete commercial truck insurance policy.

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Reefer coverage is not required by law, but most shippers and brokers will require it for carriers transporting refrigerated goods. 

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The policy will cover the cost of replacing cargo up to the policy limit as defined in the insurance contract and may also cover expenses related to disposing of spoiled cargo.

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The policy will not cover repair or replacement of the truck’s refrigeration system.

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Reefer breakdown coverage is for anyone hauling refrigerated goods such as:

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• Refrigerated foods
• Frozen foods
• Medicine & medical supplies
• Cosmetics
• Plants & flowers
• Other temperature sensitive goods

Reefer breakdown insurance is required for a variety of vehicle and trailer types, including:

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• Semi trucks that haul “refrigerated trailers”
• Reefer box trucks
• Refrigerated vans
• Pickup trucks with a reefer unit installed in the bed of the truck or hauling a trailer with a reefer unit (most common in hot shot trucking)

Reefer breakdown coverage is usually included in a broader cargo insurance policy. For a reefer truck with a policy limit of $100,000, the cargo insurance premiums are typically $1,000-$2,000 per year.

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Like all insurance policies, cargo insurance will vary widely by truck type, size, driver history, policy limit, deductible, cargo hauled, and area/range of service.

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Motor carriers should consider the following when looking for cheap reefer breakdown coverage:

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• Opt for the lowest policy limit that still meets the requirements of the shippers/brokers and covers the value of the refrigerated cargo
• If a trucking company does not haul cargo that is commonly excluded, such as meat or medicine, then they should not opt for additional coverage on those items
• Opting for higher deductibles can also help carriers save on monthly premiums but trucking companies will pay more out of pocket in the event of a claim
• Some insurance providers will offer discounts if the annual premiums are paid upfront

Ultimately, shopping around and comparing quotes with multiple insurance providers is the best way to find cheap coverage. 

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Once a policy is in place, carriers can avoid expensive claims by maintaining refrigeration equipment with regular inspections. Keeping a maintenance and inspection log can also help if a claim does arise.