Reefer breakdown coverage: what it covers and who asks for it
Reefer breakdown is coverage, usually added to motor truck cargo insurance, for refrigerated freight damaged when the refrigeration unit breaks down. It covers the load, not repair of the unit. Some brokers, Uber Freight for one, require it on your certificate.
- What it covers
- Common conditions
- Who asks for it
- Questions for your agent
- FAQ
A standard cargo policy may not pay when a load spoils because the reefer unit quit. Reefer breakdown coverage fills that gap. Here is how it works.
What it covers
- Reefer breakdown is usually an endorsement on a motor truck cargo policy. In one published Lloyd's form, it covers the insured's legal liability for loss of or damage to refrigerated or temperature-controlled cargo caused by mechanical failure or breakdown of the temperature control unit (sample endorsement).
- The sample endorsement covers cargo only, not the unit itself.
- The loss must be conclusively proven to come from the unit's failure, and a deductible set on the schedule page applies.
Common conditions
Forms differ. The sample form we cite:
- Excludes breakdown caused by not keeping enough fuel, crankcase oil or refrigerant.
- Excludes willful damage to the unit and units more than 10 years old by model year.
- Excludes failure caused by a computer or electronic process malfunction.
- Requires the unit to be maintained to the maker's instructions and inspected at least once a month, with records kept.
Who asks for it
- Federal rules require cargo insurance only for household goods carriers (49 CFR 387.303T(c)). For other freight, cargo limits and add-ons are contract terms.
- Brokers set them. Uber Freight, for example, requires reefer breakdown coverage for reefer carriers and wants it on the certificate with limits and deductibles (Uber Freight).
Questions for your agent
- Is reefer breakdown on my cargo policy, and what limit and deductible apply?
- What maintenance and inspection records does my policy require?
- Does the unit's age matter under my policy?
- Will my certificate show reefer breakdown for brokers that ask?
Related: motor truck cargo insurance and broker insurance requirements.
FAQ
What does reefer breakdown cover?
Loss of or damage to refrigerated or temperature-controlled cargo caused by a mechanical failure or breakdown of the refrigeration unit, under the endorsement's terms. It covers the cargo, not repair of the unit.
Is reefer breakdown part of cargo insurance?
It is usually an endorsement added to a motor truck cargo policy. In the sample Lloyd's form we cite, it applies only if it is listed on the policy's schedule.
Is reefer breakdown coverage required by law?
No. Federal rules require cargo insurance only for household goods carriers (49 CFR 387.303T(c)). Brokers and shippers set reefer breakdown as a contract term. Uber Freight, for example, requires it for reefer carriers.
Why would a reefer breakdown claim be denied?
Policy wording sets conditions. The sample form we cite excludes failures from lack of fuel, oil or refrigerant, computer or electronic malfunction and units over 10 years old, and requires monthly inspections with records. Read your own policy.
This guide is general information, not legal advice or an offer of insurance. Rules and programs change, so check the sources below.
Sources
- Sample motor truck cargo optional endorsements, Commonwealth Underwriters (Lloyd's) (PDF) (PDF file dated Jun 15, 2010, no edition shown, accessed Oct 28, 2026)
- Uber Freight: Carrier insurance requirements (accessed Oct 28, 2026)
- 49 CFR 387.303T: Security for the protection of the public, minimum limits (last amended Sep 30, 2019)