There have been several changes within the trucking industry over the past several years. In some cases, these changes have prompted the requirement for additional insurance protection. Any business owner within the field should be aware of the specifics and so ensure that their business is properly protected.
Why The Trucking Industry is Important
While many outside the trucking industry might downplay or underestimate its significance, it literally is the engine that keeps the chains of commerce moving. Without this all-important industry, our economy would grind to a swift and sudden halt. After all, even during the most strict times of COVID shutdowns, the trucking industry had to remain running. In fact, in some cases, today’s industry is even busier than pre-COVID days. It is most certainly an essential industry.
Unfortunately, due to many issues like supply chain problems and a shortage of available and qualified truck drivers, the industry has become difficult to navigate for managers and business owners.
Here are some factors to keep in mind, so you keep your trucking business safe against liability and lawsuit, while also appealing to new employees:
What is Driving up Premiums in the Trucking Industry?
One common problem faced by many businesses within the trucking industry is the immense increase in insurance rates during and after the pandemic. There are many reasons behind this increase. One main factor is that there are mandated laws that require at least $2 million in coverage per truck. This is far from the only factor, as there are a host of other reasons that have collectively led to a significant increase in insurance rates within this industry. Many of these are due to the significant cost associated with even one minor incident as it relates to trucking.
What You Need to be Protected Against as a Business Owner
Unlike a standard car accident, a single trucking accident can result in a million or billion-dollar settlement. Therefore, one incident could cost you the entirety of your business if you are not adequately insured and protected. If you have not already added them, consider inquiring about the following types of coverage that you should have as part of any comprehensive insurance plan:
General Business Liability Coverage: This isn’t specific to the trucking industry but is a type of business coverage that protects you from a wide range of potential perils. Claims like personal or bodily injury or damages to a building could fall under this category.
Commercial Auto Insurance: This coverage goes above and beyond simply protecting a vehicle. It includes protection for any vehicle used in conducting business. There is even industry-specific coverage that pertains to the trucking industry.
Cargo Insurance: You will be glad to have this policy if a load your company is hauling becomes damaged or is lost, and it’s up to you to refund the cost of the items behind shipped. Cargo insurance works exactly as it sounds and protects the cargo within the trucking industry during transportation.
Worker’s Comp: This is necessary for all employees and all types of businesses. It basically protects your employees in the event they are injured or become ill due to work-related conditions and/or accidents. It can cover medical bills and even some amount of lost wages.
Commercial Umbrella Policy: This important additional policy serves to increase your standard coverage, providing an extra layer of protection that goes above and beyond your liability coverage limits.
Additional Precautions You Can Take to Stay Safe in the Trucking Industry
Ensure all your drivers have the correct training and keep up with their continued education.
Don’t skip out on drug testing and other methods of ensuring a person is clean simply because you are trying to attract drivers. You don’t want an unsafe driver on the roadways driving for you.
Conduct pre-trip inspections, as they can help avoid accidents and violations, which have a direct effect on company’s insurance rates.
Know there is a driver shortage and try to be patient when attempting to find the right professionals to fulfill roles.
Have your insurance coverage up to date, comprehensive, and on hand no matter what situations arise.
Meet With a Broker
To get the best possible deal, trucking company owners should meet with their broker to negotiate a fair price and the right insurance plan. Insurance specialties will be able to notify you of any insurance-related industry changes and implement coverage where there might currently be hidden gaps.