UIIA Insurance Requirements
The UIIA, which stands for the Uniform Intermodal Interchange & Facilities Access Agreement, offers significant advantages to motor carriers. It enables them to gain access to the equipment and facilities of railroads, ocean carriers, and equipment leasing companies through a unified industry-standard interchange contract. To become part of the UIIA, carriers must furnish the following essential information: their company's basic details, SCAC code, UDOT/MC Number, TAX ID Number or Employee Identification Number (EIN), insurance documentation, and the UIIA annual fee.
How does UIIA work?
Insurance carriers must meet specific requirements to be eligible for participation in this program. Apart from the UIIA, every UIIA Equipment Provider (EP) maintains its own distinct set of prerequisites. The subsequent information outlines the fundamental coverage requirements that carriers must meet to become part of the UIIA.
While the FMCSA mandates a minimum of $750,000 in Auto Liability Coverage, the UIIA stipulates a minimum requirement of $1 Million. To qualify for the UIIA, every policy must include a "Scheduled and Hired Autos Policy" at a minimum. "Scheduled" denotes that each truck operated under your authority must be explicitly listed on the insurance policy. "Hired Autos" provides coverage for vehicles owned by entities other than yourself, which are temporarily hired or rented. Additionally, the Auto Liability policy must incorporate a formal UIIA endorsement (UIIE-1, CA23-17, or TE23-17B), which must be completed by the insurance company and appended to the policy.
General Liability Coverage extends protection to a business against bodily injury, personal injury, and property damage arising from the business's operations, products, or incidents occurring on its premises. Under the UIIA, there is a requirement for $1 Million in occurrence coverage and $2 Million in aggregate coverage. In practical terms, this means that the $1 Million provides coverage for each individual claim, with a maximum total coverage of $2 Million for the entire policy period.
Motor Truck Cargo
In the case of most equipment providers, the stipulated requirement for Motor Truck Cargo is set at $100,000. While some equipment providers may demand a $250,000 limit, the majority of equipment providers typically specify a $100,000 requirement. The rationale behind the higher requirement is their expertise in handling Out of Gauge/Over Dimensional Container cargo, which essentially means dealing with oversized or overweight containers. Additionally, for most equipment providers, a $1,000 deductible is mandatory.
Trailer Interchange insurance provides coverage for the trailer, whether it is connected to the power unit or not, while it is under the care, custody, and control of the insured. The typical Trailer Interchange (TI) coverage requirement stands at $35,000. Nevertheless, certain entities require an elevated TI limit of $65,000, whereas all other instances mandate $35,000 or less. Remarkably, 95% of these cases mandate a TI limit of $30,000 or lower. Their requirements exceed the standard UIIA EPs due to their specialization in long-distance transportation of perishable and temperature-sensitive cargo. It's essential to emphasize that they do not accept Non-Owned Trailer Physical Damage coverage because it only provides protection for the trailer when it's connected to the power unit.
Workers Compensation & Employer's Liability
The choice of Equipment Provider made by the motor carrier may entail additional requirements, including but not limited to Workers Compensation, Employer's Liability, and potentially extra documentation. For detailed guidance regarding workers' compensation and employer's liability coverage, please refer to the instructions provided here, which are relevant to certain UIIA Equipment Providers.