The transportation industry is feeling the ripple effects of a pandemic economy. The good news is there are risk management strategies that carriers can deploy. Deeley Insurance Group can position your business to deal with rising equipment values, repair delays, and potential loss of income due to downtime.
DEALING WITH THE DRIVER SHORTAGE
The labor pool is shallow across all industries, and most trucking companies struggle to attract experienced drivers. Because of a lack of available recruits, some carriers have lowered their minimum experience levels so they can keep rigs on the road. Unfortunately, this can result in greater risk. To prevent accidents and protect workers’ compensation premiums, tap into safety training resources. Your insurance advisor can connect you with options and offer guidance on how your comprehensive safety and training protocols will tell a proactive story to underwriters. Enhancing these programs helps you avoid accidents and secure the best possible rates.
Communicate often with your insurance provider. It’s especially important to let them know when you bring on a new driver. An example: A carrier who was diligent about calling in every driver did not call in a driver with one year of experience. The driver had an accident—and he was unscheduled. The insurer did not renew the policy.
The lesson: We know how busy the days (and nights) can be. But take the time to add new drivers to your policy so you don’t risk losing insurance or end up paying out-of-pocket completely if an accident occurs.
ADJUSTING VALUES MIDTERM
Insufficient equipment values can hurt if you have a claim. As equipment prices increase due to limited availability, ask your insurance advisor to review values—even midterm. Why wait for renewal? Insurers are allowing carriers to increase limits midterm in this unprecedented environment. This is important: if an accident occurs and values are not updated, you’ll end up sacrificing profits to pay out-of-pocket for repairs.
MANAGING BUSINESS AMID REPAIRS
We’ve seen it a number of times during the last couple of years. A smaller carrier with a few trucks is out a vehicle because it needs repairs. Parts shipments are delayed— indefinitely. The equipment sits in the lot, and the carrier is still paying for everything except the fuel. This scenario can put a company out of business. And if a driver’s vehicle is off the road waiting for repairs, they may even lose that employee.
We can’t control supply chain stress, but there are risk management solutions to help keep a business whole. Talk to your advisor about coverage for downtime interruptions and review your business policy for Loss of Income coverage. With open communication, you can Be Sure your business is prepared to handle the unexpected.‘BE SURE’ CHECKLIST
- Request a review of equipment values and make necessary adjustments to your coverage midterm, if necessary.
- Revisit safety and training procedures and ask your insurance advisor to connect you with resources.
- Consider business interruption coverage, especially while parts and new equipment are scarce