The trucking industry is currently experiencing higher than average commercial insurance premiums. The industry is no stranger to high premiums, as trucking is considered a high-risk profession. Between the risks of accidents, injuries, and roadside breakdowns truckers face a lot of liability.
However, a string of high-payout accident settlements in the past year has made several carriers wary of underwriting trucking policies, according to a recent article in The Wall Street Journal.
The reporter, Jennifer Smith, noted that some of the largest carriers have stopped covering most for-hire truck fleets altogether.
“Insurers still cover trucks operated directly by retailers and manufacturers, brokers say. They had been two of the biggest underwriters for the business. Other insurers hiked premiums anywhere from 10% to 30%,” the article noted. Smith highlighted that most trucking companies require drivers to carry at least $1 million in coverage, per accident; however, many companies are trying to add more coverage and increase their limits to protect themselves against the rise in large payout settlements.
At the same time, many insurance carriers are looking to limit their own exposure and, as a result, truckers could pay nearly double for policies that have half the coverage limit compared to previous years’ policies.
So, what can trucking companies do to stay afloat in such a tough insurance market? It all comes down to your safety and accident track record.
Mark Brockinton, the CEO for Aon’s transportation and logistics practice said to The Wall Street Journal that motor carriers are trying to mitigate their risk in a variety of ways including:
- Using collision-avoidance technology
- Utilizing speed-limiters
- Intensifying the drug screening process for drivers
- Avoiding traffic lanes that are prone to accidents
In addition, trucking companies should adopt regular safety training courses for all their drivers and avoid driving in inclement weather.
If you’re looking to get trucking insurance, make sure you use a provider like CoverWallet, which can help you navigate the commercial insurance market. You can complete your application online in a matter of minutes, or you can give us a call and one of our licensed advisors can assist.
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