Trucking companies play a vital role in keeping goods moving and supporting the economy. Whether running a small fleet or managing local deliveries, having the right trucking insurance is essential. It protects drivers, vehicles, and the company’s reputation. Eddie Dreyer, a commercial lines underwriter at Central Insurance, recently shared valuable insights on the necessary coverages for trucking businesses and how modern tools like telematics are changing risk management.
Trucking operations face various risks, including accidents, cargo damage, and regulatory issues. These challenges can lead to business disruptions and increased costs. Central Insurance emphasizes the importance of understanding the underlying factors that contribute to a company’s risk profile. This includes factors like hiring practices, training, maintenance, and the overall safety culture within the organization.
When assessing trucking accounts, Central Insurance focuses on three main areas:
-
Commercial Auto Liability: The size of the vehicle and the consistency of routes are key factors in determining auto liability exposure. Larger trucks are at a higher risk for serious accidents, especially on unfamiliar routes. Companies with predictable local routes generally face lower risks.
-
Driver Quality: Monitoring real-time Motor Vehicle Records (MVRs) helps identify risky driving behaviors, such as speeding or accidents. This allows companies to ensure that only qualified drivers are on the road, as one high-risk driver can impact the entire fleet.
- Safety Programs: Companies that have documented safety programs stand out. These programs demonstrate a commitment to proactive risk management and can significantly reduce potential accidents.
Understanding risk is just one part of securing trucking insurance. Essential coverages include:
- Auto Liability and Physical Damage: This covers damages or injuries from accidents and helps pay for vehicle repairs or replacements.
- Medical Payments Coverage: This provides quick payment for medical treatment after an accident, regardless of fault.
- Motor Truck Cargo Liability: This protects the goods being transported, ensuring that companies can recover costs in the event of theft or damage.
- Property Coverage and Business Income: This safeguards physical locations from damage and helps cover lost income during repairs.
Beyond selecting the right insurance policies, successful trucking fleets are adopting technology like telematics. These systems track vehicle and driver activity in real-time, providing insights that can enhance safety and reduce costs. For instance, telematics can help identify unsafe driving behaviors before they lead to claims and improve route planning to save on fuel.
Despite some hesitance from trucking companies due to privacy concerns, the benefits of telematics are clear. They not only help monitor drivers but also protect them by providing accountability and opportunities for improvement.
Central Insurance is committed to understanding the unique needs of each trucking operation. With a strong focus on risk management and safety, they aim to help businesses stay ahead of potential issues. Their experienced team works closely with clients to identify risks early and strengthen safety practices, ensuring that trucking operations can continue to thrive.