Commercial Trucking Insurance

Because business insurance coverage should be customized to match your individual business plan and the services you offer, insurance is becoming increasingly modular. This allows for a great deal of individual control when you’re looking to modify your current insurance coverage or are looking for a new company. This is especially true in the long-haul trucking industry because insurance requirements can fluctuate based on a large number of factors such as the state, the materials being transported, and whether you’re an independent contractor or own a larger long-haul trucking business. Here are some elements of coverage that you should always keep in mind when looking for an insurance plan that best fits your business:

• Auto liability and auto physical damage: These two components of insurance are often mistaken for each other but both are essential. One covers you in the event of an accident in which you are liable for damages to another’s property and the latter provides coverage for damages to your own property — in this case, your vehicle.
• Hired and non-owned coverage: Similar to the liability insurance listed above, hired and non-owned coverage covers you for damage caused by a vehicle you hire, or a vehicle that belongs to one of your employees,  any event of injury or property damage.
• Motor truck cargo: Because the cargo or freight being hauled by a trucker is not covered through auto-specific insurance coverage, it is essential that you add this component to your plan because it covers your liability for Lost and damaged cargo

Terminal operations: This insurance option is to prevent catastrophic loss. It covers damage to vehicles that are stored together in locations such as a garage or lot.

Trucking accidents are an unfortunate risk of the industry, and all too common. The stats show that it is a major problem. In 2017, 69 percent of accidents resulting in fatalities involved tractor-trailers. Deaths increased from truck accidents in 2018. Major contributing factors were:

• vehicle failure
• overcompensating while steering evasively
• tailgating
• driver fatigue and physical impairment

Looking at these significant contributing factors give us clear ideas about how to reduce trucking accidents. Here are some ways to protect individuals and businesses by reducing trucking accidents.

Avoid Driver Fatigue

Because the trucking industry has typically paid by the mile or the load, not by the hour, fatigued driving is a big problem. The Federal Motor Carrier Safety Administration indicates required break times and maximum hours of driving allowable. Trucking companies and their drivers need to abide by the limits set out by the law and by company policy.

If an accident does occur and the driver is not covered by insurance, he/she and his/her employer can be held liable for any resulting damages, injuries, or death. No delivery is worth a life.

Drivers should stay away from controlled substances that purport to offer wakefulness or focus. The money earned or saved by pushing beyond safe limits is not worth the risk.

Teach Safety Skills – And Go Beyond

Trucking training helps reduce unsafe behaviors. Unless safety policies reinforce this training, it will not do much. It is beneficial to train drivers continually, instead of training new hires and calling it quits. Refresher courses promote safety, as does training that considers new regulations and seasonal changes.

Safety needs to be a commitment and corporate cultural cornerstone from the top down. If management does not care about safety, why should anyone else?

Always Inspect and Maintain

Regulators set strict rules for the maintenance and operation of commercial vehicles. Unless drivers are regularly inspecting and maintaining their fleet and operating under the right circumstances, mechanical failure is sure to be a problem. Something as simple as distributing a load improperly can have tragic consequences. And brake defects are a common cause for trucks to be taken out of service. Failing to complete inspections, maintenance, and the associated documentation means liability could transfer to the driver following an accident.

The increasing need for overland transport combined with the retirement of an aging workforce has created a truck driver shortage. On the face of it, times ought to be good for truck drivers but the reality is different. What remains of the driving workforce must bear the brunt of the increasing demand for long-haul trucking services. This means they must transport more loads at ever tighter delivery schedules.

This problem is exacerbated by the rise of e-commerce, which has placed pressure on the trucking industry for faster deliveries at a lower cost. All of this sums up to stressed and overworked truck drivers sharing the road with the driving public, which leads to increased trucking accidents and litigation against the truck drivers and their carrier companies.

An Inexperienced Workforce

Long-haul trucking has never been an easy way of making a living. While there are individuals who are drawn to and even thrive in the profession, many new-hires never adjust to the grueling 2,000 or 3,000 miles per week of driving combined with the long periods of time away from their families. Because their employers are operating on thin margins, the pay is low and is often based on covered mileage.

These factors, combined with demanding delivery schedules, result in a high annual turnover rate. This leads to a perpetual workforce of inexperienced drivers who lack the driving and safety skills that can only be gained by years of road experience. Carriers with a large percentage of new-hire drivers face a high risk of accidents and civil litigation, many of which could be negligent hiring lawsuits.

Here are three accident scenarios for which your rental client may be held liable:

Risk #1: Tire Blowout

Chronic underinflation will damage the rubber and sidewall belting in tires. This damage doesn’t go away even after the affected tires are re-inflated to their proper pressure. A renter could abuse the rig’s tires in this way and then re-inflate them before returning the truck to the rental company. The company might then rent the truck to another customer without knowledge of the tire damage. The customer may then use the truck on a hot day (which stresses the damaged tires) and experience a blowout that damages the truck, cargo, and involves several motorists.

Risk #2: Wheel-Off Accident

Improperly installed wheels may come off while the rig is on the road. Excessive torque on the lug nuts can overstress and weaken the studs, which can break and cause a wheel to come off the trailer. Under-torqued nuts can come loose and cause a wheel-off accident. This mistake can be made by a renter or by the rental company. Runaway wheels have crashed into the windshields of moving cars, struck pedestrians, and crashed into the windows of nearby buildings.

Risk #3: Underride Accident

Poor maintenance of the rear underride guard of trailers has caused underride accidents. However, this accident can also occur when a car strikes the unprotected side of the trailer. This can happen when missing or burnt-out trailer lights, or missing reflective strips make the trailer invisible at night. Empty flat-bed trailers are very difficult to see at night from the side, and the lack of lightning and reflective tapes will exacerbate the problem.

This night invisibility has caused cars to strike the trailer’s side without every braking before impact. Such accidents are catastrophic to the occupants of the car. Failing to wash mud off the lights and reflectors of a trailer can also cause the same problem.

Cargo Theft has always been a problem for the long-haul trucking industry. In past decades, it was often a crime of opportunity. A trailer full of goods was left overnight in a dark and remote area with only padlocked trailer doors for security, and a thief would seize the opportunity with little premeditation. Although such opportunistic heists still abound today, an increasing number of cargo theft incidents are sophisticated and well-planned crimes.

Cargo theft isn’t limited to high-value items such as pharmaceuticals, computers, and electronics. Sometimes food and drink shipments are targeted because of their relaxed security and the greater ease of fencing them off. An added benefit is these goods are consumable, which makes their long-term tracking by law enforcement more difficult. As should be clear, cargo theft is an ongoing risk that won’t go away anytime soon.

Long-haul trucking insurance can be complicated, especially when you travel across state lines and don’t know what you’ll be carrying from one week to the next. There are numerous different considerations that come into play when you’re choosing the best insurance for your long haul trucking coverage. Here are two easily overlooked areas for customization to keep in mind when you’re shopping for new coverage:

Company Rating

A lot of the time, especially if you’re an independently contracted trucker instead of one working for a corporation, insurance coverage is not just for your own peace of mind but also for that of your client or contracted employers. That’s why it’s critical that you find coverage through a company that has high ratings through an independent source. For example, the A.M. Best Company gives insurance providers ratings based on financial stability and the strength and reliability of their coverage. Using a company that has a high rating not only guarantees you that you will be covered in the event of an accident or claim but it also reassures your clients that they are working with a professional that has them covered.

Easily Customized Coverage

While there are a few national standards for trucking insurance coverage, which can be found on the United States Department of Transportation website, they’re also a lot of regulations that can change based on the state you’re in, what you are transporting, and sometimes, if you’re working for a government agency as opposed to a private corporation, who you’re transporting it for. Because different jobs require different types of insurance you’ll want to find a company that can keep those changes and mind and can help you customize your coverage for the specifics of your business quickly.