Drayage Hauling: The Insurance Gaps You Don’t Want to Overlook



Short hauls. Port runs. Quick turns. Drayage sounds simple, but when it comes to insurance, it’s not always cut and dry.

Most policies are written like drayage is just container work between the port and a local warehouse. But real-world operations are a lot more layered than that.

If you're picking up for retailers, doing residential drops, or moving equipment you don’t own, you might be exposed without realizing it. We’re not here to scare you. We’re here to make sure your insurance actually matches the way you work.

What Is Drayage, Really?

Technically, drayage means short-distance container transport. Usually:

  • From ports to warehouses
  • From rail yards to distribution hubs
  • Or staging containers for cross-docking

But in practice, drayage often includes:

  • Street turns (delivering the container and reusing it on a second load)
  • Off-terminal storage runs
  • Equipment repositioning or empties back to the port
  • Multi-stop regional routes tied to port freight
  • Drop-and-hook contracts with ocean carriers or freight forwarders

Drayage isn't just short haul. Some of these trips cover 100 miles or more, cross state lines, or include staging at third-party sites. All of that changes how the risk gets underwritten.

UIIA vs Drayage: Not the Same Thing

These two terms get tossed around like they mean the same thing. They don’t.

Drayage is a type of trucking operation

It usually means short-haul container work. You’re moving freight between ports, rail yards, warehouses, or distribution centers.
You can be a drayage carrier without ever signing a UIIA agreement.

UIIA is a contract

The Uniform Intermodal Interchange and Facilities Access Agreement is a legal document between you and the equipment providers.
If you want to use pool chassis or access most major ports, you need to be signed onto the UIIA.

Here’s where it connects

A lot of drayage carriers also operate under UIIA. But just because you move containers doesn’t mean you’re UIIA-certified.
And just because your agent knows you haul out of a port doesn’t mean your policy is built to meet UIIA terms.

What UIIA Requires

If you’re operating under UIIA, your insurance must include:

  • At least $1 million in auto liability, with proof filed
  • Trailer interchange coverage if you’re using pool chassis
  • Workers’ compensation or occupational accident coverage
  • Cargo
  • General Liability
  • Certificates of insurance listing every equipment provider you work with

Don’t assume your policy is already set up right. We’ve seen plenty of claims denied over missing language, incorrect limits, or unlisted parties.

 

Equipment You Don’t Own Is Still Your Responsibility

Drayage is full of moving parts, and not all of them belong to you.

If you’re pulling:

  • Steamship line chassis
  • Borrowed or rented trailers
  • Drop-frame containers or specialty equipment

You need to be clear on who owns what and who’s responsible when things go wrong.

Here’s what usually applies:

  • Trailer Interchange Coverage if there’s a written agreement in place (typically the case)
  • Non-Owned Trailer Physical Damage if you’re pulling without a formal interchange, (usually while attached to your truck)
  • Cargo coverage that follows the freight not the truck or driver. It generally follows the motor carriers liability for the load.

Cargo can get denied if the truck/driver/trailer wasn’t listed or the freight wasn’t technically in transit. It’s a paperwork issue, but it matters.

Watch for Residential Delivery Exposure

More ports are pushing drayage carriers into the final mile, especially for high-volume retailers.

That creates a whole new layer of risk:

  • Tight access and residential turns
  • Property damage potential on driveways or curbs
  • Liability if someone gets hurt during delivery
  • Inside delivery, liftgate use, or pallet handling

Here’s the truth. Standard trucking auto liability doesn’t cover all of that.

If your drivers ever leave the cab and interact with freight or customers, even just once in a while, you need general liability added to your policy and verify your insurer will cover residential delivery (there are many out there that do not). Without it, you’re wide open.

Port Access and Compliance: Not Just Paperwork

If you operate inside port zones, there are often compliance boxes to check:

  • TWIC cards for driver access
  • SCAC codes registered with the FMCSA
  • UIC or terminal-specific IDs
  • Proof of insurance limits filed with port authorities

If any of that lapses, you could be denied entry. But worse, you could be running non-compliant freight without realizing your policy is invalid for the job.

Don’t just check the boxes once. Make sure your insurance stays updated as your contracts and equipment change.

How to Protect Your Operation

You don’t need a brand-new policy. You need the right one that fits how you actually operate. Start with this:

  • Clarify your radius. If you’re doing more than 25-mile loops, say it
  • List all trailer types. Owned, rented, interchanged. Every kind matters
  • Add GL coverage if drivers interact with freight off the truck
  • Double-check cargo coverage. It should reflect what you’re moving now and where you deliver to.
  • Update your UIIA filings. One expired cert can throw you off the roster

Our Take

Drayage carriers face more complex risks than most people realize. What looks like a short haul on paper could involve third-party trailers, residential exposure, and equipment you don’t even own.

If your insurance doesn’t reflect that, it won’t hold up when you need it most.

We don’t believe in basic coverage. We believe in getting it right.

Want Us to Take a Look?

Whether you’re pulling from Savannah, Houston, Newark, LA, ETC. we’ve built drayage policies that actually protect the work being done.

Email us at info@trucku.biz and we’ll break it down with you.

No pressure. Just coverage that works.


Disclosure:

This post is for educational purposes only. It’s not legal advice, insurance advice, or a substitute for calling your agent. We’re good, but we’re not psychic. Policies vary, laws change, and courtrooms get weird. Don’t make decisions based solely on something you read on the internet, unless it’s from us, in writing, with your name on it. 

All opinions are our own and do not represent the views of any carrier, employer, or underwriting department that occasionally wishes we were quieter on LinkedIn.


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