A Brief Introduction About the Trailer Interchange Agreement
While driving on the road, a truck driver is likely to face an accident, and this may damage the goods or products he aims to transfer from one location to another.
In this particular agreement, the names of the two or more truck drivers are written along with their contact details and residential address. The purpose is to help them avoid accidents, and in case of an accident, the insurance company provides coverage for the damage.
What Is the Non Owned Trailer Coverage?
The trailer interchange coverage is the facility or insurance provided for the physical damage of a trailer done by one or both drivers. In simple words, the trailer exchange may not be possible without getting the damage covered in the first place.
Who Takes the Trailer Interchange Agreement – People Involved
The contract is made between the drivers who aim to transport certain goods from one place to another. Both parties are responsible for signing the agreement before bringing goods to their respective or said places.
Purpose of the Trailer Interchange Agreement- Why Do You Need It?
First of all, the core purpose of this agreement is to note down the rules and regulations on an official paper. These rules and regulations or terms and conditions are settled in a way that the two or more parties involved in the agreement are aware of everything.
Another good purpose is to make the truck drivers aware that the goods provided to them are for the purpose of transferring from one place to another. This ensures that they remain bound by these rules and regulations. In cases of damage caused due to negligence or carelessness, then they are required to cover the damage fully or partially.
Contents of the Trailer Interchange Agreement
If you have a trailer interchange contract, you need a few mandatory inclusions which are as follows
- Name and address of both the parties
- Trailer Interchange Insurance Coverage (non owned trailer coverage)
- The date on which transaction/liaison took place between the two parties.
- Liabilities in case of breach of the agreement
Typically, the trailer interchange contract should also mention compensation/penalties for the damages of goods, if any.
How to Draft the Trailer Interchange Agreement
You can draft the contract yourself by following these simple steps.
- The process begins discussing and clarifying details with the truck drivers involved. They should be allowed to speak to one another in order to decide how many goods is tolerable.
- Once the negotiation has been done, the next step is to write down the decided or basic terms and conditions on a piece of paper and asking the drivers to go through the draft. If they are having some confusion or problems, then changes can be made, or editing should be done.
- Once everything has been confirmed as per the terms and conditions, the next important step is to sign the draft so that things are finalized as soon as possible.
- Both of the parties are allowed to check their rights and interests and ensure that everything is according to their desires and requirements. Their rights have to be protected.
Ideally, the contract should be signed by the two parties and multiple times to ensure that there is no violation of anyone’s rights, and no party is allowed to cheat on the other.
The best and most appropriate negotiation strategy is that the non owned trailer coverage should be provided, followed by a promise that the clauses of the contract will be taken care of. Negotiation can be done in this regard so that the damage to the trailer or goods is avoided to an extent.
Benefits and Drawbacks of the Trailer Interchange Agreement
One of the core advantages of trailer interchange agreement is that it provides the truck drivers with a chance to get their concerns and deals recorded or noted in the form of a paper.
Another advantage is that it maximizes the chances of getting the desired truck, trailer, or goods insured. In case of any damage, the insurance company will partially or fully cover the losses after proper and thorough investigation. It will urge the drivers to follow the given rules and regulations.
A core disadvantage or drawback of this agreement is that some insurance companies refuse to provide insurance or cover the losses. However, if the shipment or cargo company is involved in the matter, then the insurance services are likely to be provided.
[ Also Read: Trailer Bill of Sale ]
What Happens in Case of Violation?
The very first thing we need to remember is that there is no space for the violation of the contract. If it so happens, then the truck driver(s) might have to suffer from penalties. Thus, the contractors need to take care of the rules and regulations of the agreement and must respect the rights of one another. Every rule or clause contributes to the success of this agreement, and both parties have to take care of these things. If a violation(1) still occurs, then the affected party has the full right to take legal action against the other party.
Trailer Interchange Agreement is of great value. This will keep the two parties away from confusion and may save the time that they are likely to spend. There is a strong need to get things discussed prior to preparing a draft of the contract. This will save the two parties from having prospective issues, and the insurance company that is willing to insure the trailer will find the deal appropriate and effective.
All of the clauses and sections should be clarified with one another, and then the two parties should finalize it by signing the contract.