Posted March 28, 2017 by Administrator
Despite popular belief, insurance cancellations are actually more common than you might think. Perhaps you’ve received a notice that reads something like:
“Attention: Your current insurance policy is being non-renewed due to…”
While a non-renewal notice is something you should take seriously, it typically will not negatively impact your ability to find alternate insurance. Here are some facts you should know before securing a new insurance policy and what to do so that you keep your trucking operations running seamlessly.
Why the Non-Renewal?
A non-renewal is not the same as a cancellation. Unlike a cancellation notice, and non-renewal notice is generally issued when there is a change with the insurance carrier. For example, the insurance carrier may no longer write in your state or has left the market completely, which are circumstances outside of your control.
However, if the reason for your non-renewal notice is due to late or non-payment of premiums, an increase in the frequency or severity of claims, or poor inspection reports or compliance issues, your ability to find new insurance may be impacted.
What Should You Do Next?
You’ve received a non-cancellation notice 30-90 days before your renewal date, so use your time wisely. If you’re insured directly through the carrier, finding a new insurance company may be tricky. It is now your responsibility to find and secure new insurance before your current policy is expired.
If you’re insured through an insurance agency, it is likely your agent is already aware of the situation and will be working to find a replacement company that is best suited for your circumstances.
If you were insured through a carrier and will be shopping around for a new carrier, we recommend you have the following information ready.
- Driver schedule
Name, driver’s license number, date of birth, hire date, number of years of CDL experience for each driver
- Vehicle schedule
Year and make of each vehicle, VIN numbers, and value of each of your tractor/trailers
Last four (4) quarters of Fuel Tax Reports (mileage broken down by state)
- Loss runs
Loss runs for the last three (3) years
- Financial information
Financials for the most recent year
- Insurance certificate
Your most recent insurance certificate that shows your current coverage
- Commodities hauled
List top 3 – 4 commodities hauled
- Safety information
Safety director’s name and experience, a copy of your safety manual, copy of driver guidelines, and any safety equipment
Cline Wood represents top trucking and agribusiness insurance carriers across the country. We have access to all types of insurance programs. We treat your company as if it were our own. Contact us today to find out how we can help you manage your risk, which directly contributes to your bottom line.
Posted December 27, 2016 by Administrator
Insurance rates rose substantially for trucking companies in 2016. And while trucking companies as well as independent-operators have felt the sting of rising costs, the consumer will soon feel the pain of increasing transportation prices that show up in higher costs for consumables.
There are several factors that have had an impact on the rising insurance rates in America.
- Insurance premiums have increased 10% – 30% as a result of very high legal settlements.
- Major companies (like Zurich Insurance Group AG and American International Group Inc.) have eliminated for-hire policies, making it harder for trucking companies to secure adequate coverage.
- New food handling transportation requirements instituted by the Food and Drug Administration (FDA) have increased liability for trucking companies.
- Lesser settlements – in the $25,000 – $75,000 range – are also having an impact. Even though they are lesser amounts they are often not litigated because the cost of litigation does not make it worth taking them to court, even though many times the trucking company was not at fault.
- Frivolous suits are another frustrating factor because they consume resources and needlessly inflate insurance rates.
The negative risk exposure for trucking companies has translated into a renewed emphasis on safety. Safety is no longer just for safety’s sake (although it is extremely important in its own right.) Safety today has a major impact on the bottom line for the company and therefore is a business imperative. Not only are insurance premiums impacted, but safety mitigates risk which is now a significant financial factor for the trucking industry.
Insurance firms today are clear – they want to see motor carriers cultivating a culture of safety. Safety must become a core value of the company, not just a priority. A core value indicates permanency; safety has to be non-negotiable. No matter what conditions are placed on the freight load, it must be safely transported from start to finish no matter what.
Trucking company leaders need to back up the core value of safety with financial supports. For example, one safety feature that companies are installing are in-cab video systems that can provide video proof of driver actions in the case of an accident. That type of information can help drivers improve their safety practices. In-cab video – and other safety technological tools – cost money but are a good investment on the part of the company leadership.
Truck drivers themselves need to be empowered to make safety judgment calls without fear of recrimination. They are on the front lines and need to know they can challenge issues when they see them. Focusing on safety as fundamental to the trucking company or driver will help to mitigate insurance premium increases and will, ultimately, benefit everyone.
Cline Wood is a national commercial property and casualty insurance agency that serves the commercial agribusiness and trucking industries. To learn more about Cline Wood and how we can help your business mitigate your insurance risk, contact us.