Refrigeration Breakdown Coverage

Keep Your Refrigerated Cargo Safe

Refrigeration breakdown coverage protects you from the financial loss of spoiled perishable cargo due to a breakdown of your refrigeration unit. This coverage is essential for any trucker who transports temperature-sensitive goods like frozen foods, produce, pharmaceuticals, or other perishable cargo.

What Are The Risks?

Refrigeration unit malfunction: If your refrigeration unit breaks down while in transit, your entire load of temperature-sensitive goods can be spoiled. The financial impact can be devastating without the right coverage in place.

Accident damage: A collision or accident can harm both your cargo and your refrigeration system simultaneously. Refrigeration breakdown coverage works alongside your cargo insurance to cover losses resulting from mechanical failure of the refrigeration unit itself.

What Does Refrigeration Breakdown Coverage Cover?

Goods Replacement Cost: The policy covers the cost to replace temperature-sensitive goods that have been spoiled due to a refrigeration unit breakdown.

Loss of Value: If your cargo suffers a loss in value due to temperature fluctuations caused by a refrigeration unit failure, this coverage compensates for the diminished value of the goods.

Storage Costs: In the event of a refrigeration breakdown, you may need to store your cargo at a refrigerated facility while repairs are made. This coverage helps pay for those emergency storage costs.

Disposal Cost: If spoiled cargo cannot be delivered and must be properly disposed of, refrigeration breakdown coverage can help pay for the cost of disposal.

Duty Suspension: If customs duties are suspended due to the spoilage of temperature-sensitive imported goods, this coverage can provide compensation for the financial impact.

What is NOT Covered?

Like all insurance policies, refrigeration breakdown coverage has certain exclusions:

• Driver negligence (failure to monitor refrigeration settings, tardiness in reporting a breakdown)
• High-risk commodities that are typically excluded from standard cargo policies, including: fresh fish, fresh meat, fresh poultry, fresh seafood, tobacco, and pharmaceuticals
• Normal wear and tear of the refrigeration unit
• Pre-existing mechanical failures or known defects

Who Needs Refrigeration Breakdown Coverage?

This coverage is essential for any trucker transporting:

• Frozen and refrigerated food products
• Fresh produce and perishables
• Cosmetics and beauty products
• Plants and flowers
• Temperature-sensitive goods of any kind

Vehicle types that typically carry refrigeration breakdown coverage:

• Reefer semi-trucks
• Refrigerated coaches and cargo vans
• Pickup trucks equipped with a refrigeration unit

Other Insurance You Will Need

Refrigeration breakdown coverage is a supplemental coverage — you will also need a complete commercial truck insurance program that includes:

• Primary Liability Insurance
• Physical Damage Coverage (Collision + Comprehensive)
• Medical Payment Coverage
• Uninsured/Underinsured Motorist Coverage
• Trailer Interchange Insurance OR Non-Owned Trailer Coverage (depending on whether you use your own or leased trailers)

How Much Does Refrigeration Breakdown Coverage Cost?

The cost of refrigeration breakdown coverage depends on a number of factors:

• Truck size and type
• Value of the refrigeration unit
• Driving history and claims history
• Deductible amount chosen
• Type of freight typically hauled
• Policy coverage limit
• Years in business
• Service area and operating radius

Refrigeration Breakdown Coverage FAQs

Is refrigeration breakdown coverage part of cargo insurance?
Not automatically. Refrigeration breakdown is typically a separate endorsement or add-on coverage that works alongside your motor truck cargo insurance to cover spoilage losses specifically caused by mechanical failure of the refrigeration unit.

What happens if my reefer unit breaks down on the highway?
If your reefer unit breaks down and your cargo spoils as a result, refrigeration breakdown coverage will help pay for the loss of the cargo. You should document the breakdown, contact your insurer immediately, and arrange for emergency storage if needed.

Do I need refrigeration breakdown coverage if I already have cargo insurance?
It depends on your cargo insurance policy. Standard cargo insurance typically does not cover losses caused by mechanical breakdown of the refrigeration unit. You need a refrigeration breakdown endorsement or separate policy to be fully protected.

What types of cargo are excluded from refrigeration breakdown coverage?
High-risk commodities that are commonly excluded include fresh fish, fresh meat, fresh poultry, fresh seafood, tobacco, and pharmaceuticals. Driver negligence is also typically excluded.