Reefer Breakdown Coverage: Cost and Quotes From $40/mo

For your best business protection and savings, we recommend bundling GL with some other important coverages on one Business Owners Policy!

For your best business protection and savings, we recommend bundling GL with some other important coverages on one Business Owners Policy!

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The refrigerated transport industry has grown nearly 2% year per year since 2018. Refrigeration Industry market research estimates that the US and Canada reefer transportation market size with reach nearly 12 billion in 2025. 

Aside from tractor-trailers and cargo vans, reefer trucks are also used to transport perishable goods. The thing is the refrigeration unit and the truck itself can experience breakdown from time to time. This will ultimately result in losses. 

The best way to protect your reefer trucking business against these liabilities and spoilage of goodsis through reefer breakdown insurance policy. This article will cover the topics you need to know about reefer breakdown insurance, including:

  • What is reefer breakdown coverage

  • Cost of reefer breakdown coverage

  • Best companies for reefer breakdown coverage

What is Reefer Breakdown Coverage?

The reefer breakdown coverage definition commonly used involves the coverage for losses that result from refrigeration breaking down in a reefer truck. This is usually available as an add-on to a commercial motor truck insurance policy. 

What Particular Costs Are Covered in a Reefer Breakdown Policy?

Reefer breakdown insurance is a specific policy that only covers  a few different kinds of costs, including:

  • The cost of spoiled cargo

  • Any costs required to dispose of the cargo

This type of policy is extremely focused on providing coverage for these costs that come directly from a reefer unit experiencing a mechanical breakdown.

Which Businesses Need Reefer Breakdown Coverage?

There are a few types of businesses that will want reefer breakdown coverage badly to cover the cost of replacing spoiled cargo. Many shippers or brokers will require it before they will transport refrigerated goods. 

Truck Drivers

Trucking drivers will need reefer breakdown insurance to provide refrigerated transport services for many of their clients. If they don’t have this type of insurance, their clients might refuse to use them for shipping.

Drivers can also be found liable for product spoilage in their trucks. Some truck drivers belong to driving companies, but others are self-employed and manage their own insurance. If a driver cannot cover the cost of replacing a product, they may end up with a lawsuit or other fees if the damages are great.

Moving Companies

Companies that handle moving services for people moving house or business locations will need this if they need to transport perishable goods that need temperature control. Moving companies will sometimes possess refrigerated trucks in their fleet to satisfy delicate moving jobs that require a temperature-controlled environment. 

Many people have items in their homes that need temperature control to be transported, or they will be ruined. These can be things like artwork, comic books, some types of furniture, cosmetics, medications, and antiques. If they become exposed to moisture or high temperatures, they can disintegrate or become ruined.

Medical Transporters

A company that transports specialized medical supplies will need reefer breakdown coverage to responsibly recover the costs of wasted medical supplies in case of a refrigerator breakdown. Medical transporters are a form of specialized transportation that deliver things like human organs, blood, and medical samples.