Over the last decade commercial trucking insurance rates have gone through the roof. One report noted that commercial fleets are seeing anywhere from 100 to 300% rate increases, at the same time coverage has been reduced.
But why are the rates increasing? One reason is that insurance companies are losing money. It’s unlikely they are in the “red” so a better reason is probably that shareholders are not making the anticipated inflated profits.
Another reason could be that some motor carriers are lowering their driver hiring standards. This has led to an increase in accidents, with a costlier legal fees for defense.
Whatever the reason for premium increase ALL trucking companies that are paying the price. What can you do ensure you are receiving the best coverage for minimum premium?
Your insurance coverage should be reviewed on a regular basis as your business grows or changes.
Start early (120 days) before your policy expires and working with your broker complete the application process. That way the application is received with insurance companies at least 60 days before your quote date and develop a marketing strategy. This should identify the insurance markets to approach and your underwriting presentation.
Provide full details to the underwriters. This should include:
1. Description of Operation:
a. Should include industry (i.e. truckload, LTL, bulk, flatbed, hazmat etc.
b. Radius of operations
c. If more than one subsidiary, describe operation of each
d. Do they have warehousing or brokerage operations
e. What kind of commodities do you haul?
f. When was the company started?
g. Be specific as possible on your operation
h. Complete the Truckers application
i. Provide fuel tax report for 8 quarters and a Safer Report
j. Provide a financial/business plan for the next 2 to 3 year
k. Provide two years full financials plus interim
l. Get personally involved in the entire process. No one can sell your company like you can.
m. Partner with a professional and experience trucking broker with market clout.
n. Have a credible plan to correct problems and know how to sell it to underwriters. This includes describing your safety culture (you need one), your driver hiring standards and training.
Free Insurance Policy Audit
To assist reduce premiums while maintaining the best coverage, Venbrook Insurance is offering trucking companies a FREE insurance policy audit.
Audit recommendations provide information so that trucking companies can make their own financial choices moving forward.
The audit is free of charge and there’s absolutely no obligation.
About Venbrook Insurance Services
Venbrook is a leading provider of risk management and insurance services specializing in the transportation industry.
Led by the father and son team, Alan and Jamie Shetzer, combined they have more than 50 years experience insurance and customer service representing trucking companies coast to coast.
Contact information:
11512 El Camino Real
Suite120
San Diego CA 92130
800-449-9555 X7406
Direct: 858-764-7406
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