Leased Trailer Insurance Often Fails to Cover Equipment
Chattanooga businesses should verify their liability coverage to ensure trailers are protected under existing contracts.
Updated on Oct. 15, 2026 in Auto Parts
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Recent findings reveal that freight brokers in Chattanooga often hold inadequate insurance for leased trailers, potentially leaving owners and drivers vulnerable after an accident. Following the Montgomery ruling, companies are now shifting toward specialized liability policies to cover these equipment gaps.
Why it matters
Inadequate insurance on leased trailers can lead to significant financial exposure for local businesses and independent operators in Chattanooga. Because liability is increasingly being extended to equipment lessors, verifying coverage details on Interstate 24 and beyond has become a critical logistical step.
An audit found that every checked freight broker certificate failed to adequately cover leased trailer fleets. Leasing contracts typically span 5 years, with insurance verification required annually to address the liability gaps identified in recent legal rulings.
The players
Centerline Insurance Company
An insurance provider that recently began offering specialized liability policies designed to protect trailer leasing companies from coverage gaps.
The details
Insurance gaps often occur when freight brokers provide standardized commercial auto policies that explicitly exclude leased trailer fleets. Furthermore, many motor carrier policies require individual VINs for coverage to trigger, leaving brokers unaware if a specific carrier’s policy has lapsed. To manage these risks, some companies are now moving toward specialized lessor-side policies, such as the six recently issued by Centerline Insurance Company, which provide dedicated protection for the equipment itself.
Timeline
Between July and October 2026, Centerline Insurance Company issued six specialized liability policies for trailer lessors.
The Home Front
The shift toward specialized lessor-side policies marks a departure from traditional reliance on standard freight broker insurance. This adjustment follows the precedent of the Montgomery ruling, which has fundamentally changed how equipment owners manage liability for commercial trailers.
If you are involved in hauling or renting equipment, ensure your contract clearly specifies who is responsible for maintenance and liability. Review your insurance declaration pages annually to confirm that all leased equipment VINs are explicitly covered, rather than relying on blanket broker policies.
The takeaway
Liability for leased equipment is becoming a major focus for risk management due to recent court decisions. Always request a current certificate of insurance for any leased trailer and confirm that the policy coverage extends to the specific equipment being utilized.
Further reading
For more on maintaining compliance and equipment safety, see our Auto Parts section.
Source note: This article includes information reported by FreightWaves.
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