Through the past decade, being a commercial truck driver has only gotten more expensive with rising trucking insurance rates. In any case, certain companies are going through losses. That is how the transportation insurance industry is facing a depletion incapacity.
2019 was the eighth consecutive year that the transportation-specific-insurance market that has underperformed in overall property markets.
There have also been underwriting losses from 2011 to 2019.
Ryan Erickson, Executive Vice President of Insurance Brokerage Firm, McGriff, Seibels & Williams, mentioned this and more through a virtual conference call for the American Trucking Association, last week. He went on to say “Through the last three years, we’ve seen premiums increase dramatically.” He believes that because the commercial fleets haven’t seen any profits from 100 to 300% increases, that it’s just been more of the same story.
Here are some reasons why these rates have been continuing to rise, in spite of COVID-19, and it’s rapture of the world outside of trucking insurance.
Broker Liability Coverage
Years ago, broker liability coverage was scarce. But it’s now becoming more common. With the advent of negligent entrustment, when it comes to trucking insurance broker liability coverage gets around!
“Do I need broker liability coverage” That is a question that Jeffrey Toole posed. He is an expert on “reptile theory” litigation strategy. This is applicable especially to larger verdicts within the transportation companies of the USA.
“If you’re brokering loads… then you have to consider broker liability insurance.” Trucking companies realise this, trial after error. When consulting Toole and his colleagues at Scopelitis Transportation Consulting, they find out.
Coverage in motor carrier liability is focusing on the manner where the tractor-trailer unit is existing. Therefore analyzing the negligence with regard to ownership, maintenance or use of the vehicle. It’s focused on the decision making at the time each and every load is undergoing brokerage.
Some Risk Management Strategies
Toole has said using a risk retention group can be effective to reduce premiums. Maybe with these details, we all can avoid ficticious grouping laws and overly bothersom state laws.