Trailer Leasing Firms Face Rising Insurance Risks

New audit data reveals significant coverage gaps for freight brokers leasing commercial trailers in Chattanooga.

Updated on Oct. 15, 2026 in Auto Parts

Isometric editorial illustration of a cargo trailer parked on a desolate shipping dock, representing commercial insurance risk. — Audit data shows that freight brokers operating in Chattanooga frequently maintain inadequate insurance coverage for leased commercial trailers, increasing lessor liability. AI Illustration. Upload story photo >

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An October 2026 audit indicates that freight brokers often maintain inadequate insurance for leased trailers, leaving lessors exposed to liability. Compliance failures occur when brokers submit auto policies that specifically exclude leased equipment.

Why it matters

The Montgomery ruling has expanded legal liability for equipment lessors, making insurance verification critical for protecting assets. This shift forces leasing companies to seek direct liability coverage to mitigate potential litigation risks.

Leasing companies typically manage these risks through five-year contracts that mandate annual insurance verification. Centerline Insurance Company recently issued six lessor-side liability policies over a three-month period to address these coverage gaps.

The players

Centerline Insurance Company

This organization specializes in providing liability protection and insurance products tailored to the needs of equipment lessors.

The details

Freight brokers often struggle with commercial auto policies that require every trailer VIN to be listed, leading to coverage lapses that go unnoticed. Leasing companies are responding by bundling maintenance tiers within agreements to better demonstrate roadworthiness.

October 2026 marks the period of the latest insurance audit findings.
During a three to four-month window prior to October 2026, Centerline issued six new lessor-side policies.

Roadmap

The industry shift toward direct lessor-side insurance signals a move away from relying solely on broker-provided certificates. This protects firms against the rising legal standards established by the Montgomery ruling.

Local Chattanooga businesses relying on leased transport should verify that their insurance policies explicitly include non-owned trailer coverage. Failure to update these documents could result in personal liability for damages sustained on corridors like Interstate 24.

The takeaway

Companies should perform annual audits of their insurance certificates to ensure all leased assets are properly covered. Relying on broker compliance check-ins is often insufficient to prevent significant legal exposure.