The American Transportation Research Institute (ATRI) recently released its annual “Critical Issues In The Trucking Industry” report. The driver shortage and hours of service remain top critical issues for most motor carriers. This year, the report identified insurance costs as an emerging trend. The report stated: “Since 2013, fleets participating in ATRI’s Operational Costs of Trucking data collection have seen…
2019 may go down as the “Year of the Nuclear Verdict” in the trucking industry. According to this article from Freightwaves, a 540-unit hauler is ceasing operations after a $26.6 million judgement against it stemming from a rear-end collision where one of the company’s independent contractor drivers rear-ended and killed the parents of three children. Werner has been hit with…
One of the most important responsibilities a motor carrier has is to hire qualified drivers. This critical task, if conducted haphazardly or not performed at all, could have a negative ripple effect across the company and affect productivity, downtime, morale, expenses, and profitability. Due diligence should be given to screening applicants and conducting required background checks, but, arguably, the most…
Many clients ask us how they can lower their trucking insurance costs. In years past, we’d always advise that controlling claims and hiring good drivers was the best way to decrease premiums—and these are still true, but these measures require longer-term changes to your culture. However, in the age of algorithm-based underwriting, there is a quicker way to impact your…
How you can make every dollar count in a high revenue, lower profit margin industry Great West Casualty Company published an excellent article titled, “The Financial Impact of Losses”, that examines how trucking insurance claims affect your bottom line. Out-of-pocket repairs and paying your insurance deductibles can quickly erode profitability, so there is a strong economic argument for investment in safety. Many…
ATRI Releases 2018 Update to Studies which Predict Crash Involvement Many of our trucking clients get upset when certain drivers are rejected by the insurance company due to MVR issues. With the chronic driver shortage, it’s understandable that fleet owners and managers need to get drivers to keep their trucks moving. However, there is a statistical basis, including analysis to…
Transportation companies need to protect themselves against cyber threats. Most transportation company owners and managers understand the critical risks of their business—truck crashes and injured drivers being the primary source of losses. However, truckers are increasingly vulnerable to cyber criminals who want to steal your sensitive driver data, disrupt your computer systems, or access your bank accounts. With these types…
The DataQ System presents fleet owners the opportunity to combat CSA violations and increased insurance costs by removing incorrect violations and certain crashes. The Compliance Safety Accountability (CSA) system, now 10 years old, has not performed well, and the FMCSA is gearing up to overhaul the system. The CSA system was designed to decrease crashes involving heavy trucks and buses, but…
Recently, we warned of a “rough road ahead” in the trucking insurance marketplace. We’re now advising our current and prospective clients that we’re in a hard market for trucking insurance. After several years of poor profits in the commercial auto insurance segment, underwriting standards have tightened considerably, and rates are increasing for fleets of all sizes—sometimes dramatically. For fleets that…
An Interview with Ted Perryman, Principal (and CDL holder) at Roberts Perryman Law Firm on “reptile theory.” It’s no secret that trucking insurance rates are increasing this year, and many in the transportation industry are questioning why they are facing double-digit insurance rate increases. As cited in our Q3 Trucking Insurance market update, poor profitability in the commercial auto insurance sector…