Tag: commercial truck insurance

Separating Facts from Fiction: When an Accident Occurs

Western Truck Insurance

Knowing what to do – and what not to do – when in an accident is important in getting the facts straight and moving the claim process along. Here we’ll clear up some misinformation if you or your drivers are involved in a vehicular accident.

I should report an accident to my insurance agent, not my insurance company.

Fact: Report all claims to your insurance company and agent, who will help manage the claim and advocate on your behalf.

I shouldn’t report an accident until I get the police report.

Fact: You should report all accidents to the insurance company immediately. If possible, call from the scene of the accident. Police reports might take months to process, and important evidence and witnesses may no longer be available by the time they’re received. After you report the accident, a claims adjuster will contact you and review all the information needed to proceed with the claim.

If an accident occurs after hours, on Saturday or Sunday, or over a holiday, I should wait to report the claim until the next business day.

Fact: Report the claim right away regardless of when it occurs. Claims can be reported online after hours or over the weekend. If the claim is not urgent, the insurance company will determine whether to wait until business hours to call you.

I think the accident is no big deal and the damage seems to be less than my deductible, so I’ll deal with it myself instead of contacting the insurance company.

Fact: Even if you don’t think the accident is serious enough to warrant getting the insurance company involved, not reporting the claim could come back to bite you. If you or one of your drivers is involved in an accident with another vehicle, the third party could potentially claim injuries later on. When you report a claim, you receive the experience of adjusters and, if necessary, a legal team to help you down the road.

The accident isn’t my fault, so there is no need to report it to the insurance company.

Fact: Don’t risk the possibility of a he-said, she-said situation. You may end up on the receiving end of a lawsuit. Trucking companies are often victims of people looking for a payday. In addition, if you don’t report the claim, crucial evidence to defend you will be lost.

My drivers can wait until they return to the office to report accidents.

Fact: Again, have your driver call you and the insurance company immediately if they are involved in an accident. The driver is often the best person with the most information to report a claim so our adjusters can get the facts and evidence they need to resolve the claim.

About Western Truck Insurance Services

Western Truck Insurance Services is an insurance brokerage specializing in commercial truck insurance. We know this stuff and want to make sure you do too. Our clients appreciate our dedication to finding competitive rates and offering unparalleled service beyond excellent insurance options. They also value how our state-of-the-art automation provides lightning-fast truck insurance quotes, customer service, insurance certificates, and coverage changes. Contact us today at (800) 937-8785 to learn more.

ATRI Looking to Collect Data on the Impact of Predatory Towing in Trucking Industry

Bob Holtzman

The nonprofit research organization American Transportation Research Institute (ATRI) recently issued a news release calling for motor carriers and drivers to complete a survey so it can analyze the impact of predatory towing in the trucking sector.

The survey asks drivers and motor carriers about the most common types of predatory towing, what fees or delays they consider predatory, and in which states they have encountered predatory towing. Participants will also be asked to answer more detailed questions about the frequency of towing, which will allow ATRI to quantify the frequency and operational impact of each type of predatory event. According to ATRI, all information gathered will be kept strictly confidential.

“Recognizing its persistent negative impact on the industry, ATRI’s Research Advisory Committee identified the need to better understand this problem as a top research priority earlier this year,” the news release stated.

What Is Predatory Towing?

While most towing companies operate with integrity and legally, some don’t. Predatory towing is any incident where a tow truck provider grossly overcharges, illegally seizes, damages by using inappropriate equipment, or refuses to release a truck and/or cargo.

A predatory towing company, for example, will move in on an accident and tow a truck without consent. Bills issued by predatory towing companies are artificially inflated, with some truckers being charged for equipment that was never present at the accident scene. The costs can range between thousands and tens of thousands of dollars, which can significantly affect insurance premiums for owner-operators and larger carriers.

About Western Truck Insurance Services

Western Truck Insurance Services is an insurance brokerage specializing in commercial truck insurance. We know this stuff and want to make sure you do too. Our clients appreciate our dedication to finding competitive rates and offering unparalleled service beyond excellent insurance options. They also value how our state-of-the-art automation provides lightning-fast truck insurance quotes, customer service, insurance certificates, and coverage changes. Contact us today at (800) 937-8785 to learn more.

Beefing Up Security at Your Warehouse or Terminal

Bob Holtzman

Cargo theft is big business and happens everywhere throughout the supply chain – including on trucks, warehouses, terminals, and storage facilities. In 2021, there were 1,285 thefts reported with a total loss value of nearly $58 million in the U.S. and Canada, according to a report by Verisk’s CargoNet, which keeps track of cargo thefts. Data from CargoNet also shows cargo theft losses soared to $19 million in the first quarter of 2022 – a 73% increase over the same period in 2021.

The top targeted commodity stolen? You guessed it – electronics (computers and accessories) – followed by household goods and food. 

California takes the lead in reported cargo thefts, followed by Texas and Florida. 

Warehouses, Terminals Increasingly Targeted by Criminals

While cargo thefts continue to occur in transit and at truck stops, there has been a spike in thefts at warehouses and storage facilities, according to separate reports by Verisk and BSI Supply Chain Services and Solutions, a global provider of supply chain intelligence. The spike in part can be attributed to supply-chain congestion, where trailers are sitting idly at a terminal waiting to be picked up, or cargo is temporarily being stored at the warehouse before delivery. 

Who is responsible for the theft of cargo? Your trucking firm, of course, is responsible for the loss if the theft occurred at the terminal or your warehouse. And, without the right insurance coverage, you would have to cover the loss out of pocket.

As we discussed in an earlier article, Motor Truck Cargo insurance won’t cover theft unless your premises location is added to the policy. You need to know your exposure at the terminal or warehouse and ensure your policy is written to address your risk. You also need to know the window in which coverage is available in the event of a loss and any policy exclusions. Go over all of these details with your insurance broker. 

Help Stop Cargo Thefts

Beyond having coverage to step up in the event of cargo theft at your warehouse or terminal, nothing beats having robust security in place to help stop criminals in their tracks. What type of security should you make sure is in place? Here are some reminders:

  • Implement layered security. This starts with your people. This may seem like a no-brainer, but make sure you run background checks on all drivers and new employees.
  • Educate your staff on your security processes and protocols. And ensure everyone follows them. 
  • See if the processes and protocols work by performing some surprise checks. Fix what’s broken. 
  • Conduct regular internal audits, reviewing all records and looking for anything fishy.
  • If possible, reduce cargo resting time at warehouses. 
  • Install special locks for the cargo and invest in a tracking system to keep tabs on it.
  • Install security cameras or remote video surveillance at your location. Cameras can watch over the cargo, parking areas, trucks, and loading docks and inside the facility. 
  • Consider securing the perimeter of the warehouse with guards as an extra layer of deterrent.

Again, we can’t stress this enough: ensure your cargo is properly insured, whether in transit or at your warehouse or terminal. 

About Western Truck Insurance Services

Western Truck Insurance Services is an insurance brokerage specializing in commercial truck insurance. We know this stuff and want to make sure you do too. Our clients appreciate our dedication to finding competitive rates and offering unparalleled service beyond excellent insurance options. They also value how our state-of-the-art automation provides lightning-fast truck insurance quotes, customer service, insurance certificates, and coverage changes. Contact us today at (800) 937-8785 to learn more.

How To Improve Your Trucking Business Profit Margins Part 2

Bob Holtzman

Many factors can influence a trucking company’s profit margins and what expenses they can afford on a daily basis. There are certain factors to consider, especially what truckers can control.

You can’t control the weather, the whims of a client, or a supply chain disruption — but you can manage your maintenance practices, recruiting methods, and cost management strategies. Still, it may seem like challenges outweigh advantages, and in times like these, how do trucking businesses make money?

Trucking Company’s Profit Margins 

Learn about effective strategies for improving trucking business profits and gaining control over your company’s bottom line. You can boost revenue with the right approach while enhancing your drivers’ work conditions and ensuring your clients are satisfied.

Invest in Preventative Maintenance

One of the best ways to mitigate expenses and predict costs is to invest in preventative maintenance for your fleet. Repairs and replacements are a common source of unexpected costs. It is especially true when a truck’s stranded on the side of the road. According to Fleet Equipment Magazine, the cost of such a repair is $407 on average, which represents an increase of 24% from prior years. Multiply this cost by the number of trucks in your fleet. Then, consider how frequently you have to perform impromptu repairs — and it’s clear how quickly the costs add up. Preventative maintenance such as monitoring fluids, checking tires, and replacing filters can go a long way in preventing unnecessary breakdowns, thus minimizing costs.

Improve Your Recruiting Methods

Another high cost for trucking companies is continuously recruiting, hiring, and training new drivers. The high departure and turnover rate impacting the industry enhances this. Despite this issue, some dedicated drivers want to put their skills to use, and they want to find a long-term employer just as much as you want to see long-term employees. Finding these candidates is a critical component of minimizing your company’s expenses. Thus, you may need to renovate your recruitment strategies. Rather than casting a too-wide net, you should focus on seeking out experienced truckers who bring professionalism and commitment to the table.

Monitor Your Cost Per Mile (CPM)

Cost per mile is one of the most important metrics for tracking your corporate expenses, but it’s a frequently overlooked number. This figure is imperative if you want to gain an accurate overview of just how much you spend in general operating costs. You can calculate it by assessing your fixed costs — costs such as commericial truck insurance premiums, staff wages, permits, and license — and adding these expenses to variables such as gas, maintenance, and unexpected repairs. Then find the total number of miles your fleet drives and divide the costs by this number. Determining your cumulative CPM is a great way to understand your company’s financial standing — and work to improve it.

Pursue New Contracts and New Clients

A trucking company’s profit margins can fluctuate, and based on their marketing strategy. Many trucking companies adopt a passive marketing strategy and wait for clients to find them. It’s true that eventually, new clients will seek out your services. However, it would help if you actively pursued new contracts and clients. You might have to hire new staff or expand your fleet to accommodate more business, but this is an excellent problem to have. You can start by looking for additional loads on load boards. It can introduce you to new partners who could eventually become long-term clients. You may also be able to scope out new business by looking at broker networks that connect truckers with high-paying transport opportunities.

Invest in Customer Satisfaction

The only figure more critical than your trucking company’s revenue is your company’s customer satisfaction rate. Do you have relationships with repeat clients who continuously hire your drivers — or are you reliant upon a steady stream of new customers who may or may not come back? If the latter sounds more familiar, there’s a good chance you need to work on your customer satisfaction skills. How happy your clients are directly correlated to how profitable your business is. You can boost both by actively seeking feedback from customers, asking what you can do better, and offering to resolve issues before they can escalate.

Explore All Sources for Funding

Even if you follow all of these tips, it’s possible to run into financial difficulties. The trucking industry can be a volatile business, but you can see big profits when you invest in your company. To weather a period of slow revenue, you should explore all funding sources. You might need to apply for a company credit card or seek a loan from a family member or friend. These options often aren’t ideal, but an extra boost of funding might give you the padding you need to overcome obstacles.

Invoice Your Clients Promptly

Finally, you must invoice your clients as soon as possible. Your truck insurance provider won’t wait for payment, so why should you? You have expenses to cover and drivers to pay. Don’t allow clients to interrupt your revenue by waiting to pay. If you encounter a client who doesn’t pay promptly, it’s essential to handle the situation with patience. Rather than reacting with anger, you should extend understanding and provide them with various options to submit payment.

About Western Truck Insurance Services

Western Truck Insurance Services is a commercial truck insurance agency with roots dating back to 1954. We have evolved into a highly respected, professionally managed, truck and transportation insurance brokerage. The hallmark of our organization is our desire to provide unparalleled service. We go way beyond what you expect to receive from an insurance brokerage. Equipped with state of the art automation, Western Truck Insurance can provide you with lightning fast truck insurance quotes, customer service, Insurance certificates, and coverage changes. Contact us today at (800) 937-8785 to learn more!

Judge Blocks AB5 from California Trucking

Bob Holtzman

For those working as independent contractors in California, a lot of news has been swirling around in regards to their worker classification with their clients. From graphic designers to business consultants, a lot of professionals have had to rethink the way they operate under the new AB5 regulation passed at the end of 2019.

But quite possibly the biggest industry impacted by the new bill is the trucking industry, which is literally driven by independent trucking professionals who take one-off jobs delivering payloads from one destination to the next throughout the state. And since California’s economy is fueled by trade and commerce trucked along its highways, AB5 brought plenty of controversy with it.

Now, trucking companies and professionals in the industry can breathe a little easier as a federal judge has extended a temporary restraining order keeping officials from enforcing the terms of AB5.

Truckers Find Support

U.S. District Judge Roger Benitez listened to arguments but didn’t issue a full decision in regards to how AB5 will impact those in the industry. Instead, Benitez extended the temporary restraining order that was put in motion on December 31 and will be in effect until he makes a full-on decision on the preliminary injunction, which could take anywhere from a few days to a few weeks.

Some who oppose AB5 say it unfairly hinders trucking professionals and the companies they work for, affecting everything from tax classification to benefits to commercial truck insurance. Some go even further, pointing out that it may have major constitutional issues in terms of how it impacts goods moved not only throughout California but the entire country.

The ABCs of AB5

The California Trucking Association filed a lawsuit challenging AB5 back in November. The new law put into motion a strict ABC test in order to determine the validity of independent contractors and their relationships with clients, such as trucking companies who hire out truckers. One of the requirements prohibited companies from using independent contractors unless the worker was performing work outside the usual course of the hiring company’s business.

CTA stated that AB5 is preempted by the commerce clauses in the U.S. Constitution and comes in conflict with the Federal Motor Carrier Safety Act as well as the Federal Aviation Administration Authorization Act of 1994, which bans states from enacting laws that have an effect on a motor carrier’s prices or services.

However, while this may be a small victory for trucking professionals and organizations like the CTA, the state government is making efforts to enforce AB5. Governor Gavin Newsom’s proposed 2020 budget includes $20 million in additional funding to make sure AB5 is enforced.

But Newsom and other lawmakers are fighting adversity on multiple fronts as the Western States Trucking Association also filed a complementary suit focused on Ab5 and how it treats motor carriers that provide trucking services. And creative professionals, including freelance writers and photographers, filed their own suit in December, alleging that the new bill restricts the media.

And in a state where technology is not only born (i.e. Silicon Valley startup culture) but fuels the economy, it’s no surprise that app-based tech companies such as Uber and Postmates, which run on the efforts of independent contractors, have filed a similar suit of their own.

About Western Truck Insurance Services

Western Truck Insurance Services is a commercial truck insurance agency with roots dating back to 1954. We have evolved into a highly respected, professionally managed, truck and transportation insurance brokerage. The hallmark of our organization is our desire to provide unparalleled service. We go way beyond what you expect to receive from an insurance brokerage. Equipped with state of the art automation, Western Truck Insurance can provide you with lightning fast truck insurance quotes, customer service, Insurance certificates, and coverage changes.

The Drug and Alcohol Clearinghouse is Now in Play: What to Know

Bob Holtzman

Beginning Monday, January 6, the federal government has begun overseeing how fleets perform background checks on prospective employees and owner-operators within the trucking industry. Under the banner of the Drug and Alcohol Clearinghouse, a database of drivers who have failed or refused a drug test at some point in their job search in the industry will be stored and curated. 

Fleets of all sizes will be required to input this information into the database for all new driver hires as well as on a yearly basis for existing drivers.

The Clearinghouse was set up to help trucking companies be safe from hiring employees who have been hit with fines and violations in the past related to drug and alcohol offenses. While having resources to tap into, such as commercial truck insurance to provide the funds needed for legal coverage and settlements, is important, it’s even more important to avoid major fees and violations by staying true to the law at hand.

If trucking companies violate these terms and regulations, it can spell major legal trouble for them as well as reputationally.

Here’s a better look at what to expect from the new Clearinghouse requirements.

Current Requirements

Fleets currently are required to call prospective drivers’ prior fleets in order to perform thorough background checks. The fleets are required by law to perform this contact to inquire about failed drug tests. However, there have been some discrepancies in the past that have left the door open for drivers with checkered pasts to get back behind the wheel and possibly cause more trouble.

Fleets can skip over making this kind of inquiry and not be held accountable. What’s more, a prior employer might not provide truthful information regarding the driver in question.

Beginning on January 6, information on drivers will be available, showing drivers who have been cited for violating alcohol laws specific to trucking. There will also be information and resources available on whether a driver has completed the correct return-to-duty process after a positive drug test.

One-Truck Contractors

Independent owner-operators have always been required to participate in a drug-testing program or another third-party administrator program. With the new Clearinghouse rules, these operators will need to register as a company instead, and need to designate a consortium to handle the annual queries required by all CDL holders.

Drug testers will be responsible for inputting any positive drug tests into the new system.

Leased Owner-Operators

These professionals will need to create a clearinghouse account, although it’s not required. But any truck driver will need an account to switch between fleets due to the new fleet needing to inquire about that record specifically. Having an account will help the driver ensure there’s no mistakes or inaccurate information on their record.

When switching between carriers, leased owner-operators will need to authorize fleets to run a query on their CDL within the clearinghouse database.

Small-Fleet

Full compliance with clearinghouse regulations is mandatory, no matter the size of the fleet. Even small, two-truck fleets will have to comply by performing a full query on every new driver. Small fleets will have to register as an employer in the database and purchase queries at $1.25 apiece. These small carriers can take care of the administrative duties either in-house or through third-party outsourced drug screenings.

By the beginning of the new rules on January 6, fleet policies must post that any positive drug tests, refusals, and alcohol violations will be submitted into the clearinghouse database.

About Western Truck Insurance Services

Western Truck Insurance Services is a commercial truck insurance agency with roots dating back to 1954. We have evolved into a highly respected, professionally managed, truck and transportation insurance brokerage. The hallmark of our organization is our desire to provide unparalleled service. We go way beyond what you expect to receive from an insurance brokerage. Equipped with state of the art automation, Western Truck Insurance can provide you with lightning fast truck insurance quotes, customer service, Insurance certificates, and coverage changes.

California Truckers Protested AB 5 Last Month

Bob Holtzman

Earlier this year, the state of California set into motion a new piece of legislation aimed at redefining independent contractors, a rising professional landscape in a state where freight, trucking, and the gig economy are growing. Known as the “gig worker bill,” this puts truck drivers in a bad spot because under a new worker classification test (ABC Test), a worker is presumed to be an employee, putting the burden on the company that hires them out.

This has upset everything from commercial truck insurance policies, such as truck liability, to Uber drivers to the future status of trucking commodities across the state. More specifically, it’s caused truck drivers to speak out in protest due to its limiting of independent contractors.

In fact, truck drivers took to the streets in November, protesting the new legislation and how it’s affected their hauls from Oakland to Los Angeles to the ports of San Francisco and Long Beach. Truck horns and chants could be heard at all these locations last month, as dozens of truck owner-operators gathered together to protect the gig-work law, which could take away their independent contractor status and, in turn, hurt their potential to be their own boss and earn higher wages.

Set to take effect on January 1, 2020, the AB5 bill creates more challenges for classifying someone as a contractor unless they are free from a company’s control and have their own independent enterprise doing the same kind of work. Protests were coordinated throughout the state by many trucking professionals who feel they are being mistreated by the state. The effort has no affiliation with a specific association, but has picked up steam throughout the state.

Currently, there are more than 70,000 drivers who choose to work as independent operators in the state because of the freedom given to them through the work-model that has been in place for decades. These workers are campaigning for an amendment to the AB5 bill, allowing them to work as independent contractors and set their own hours and earn more compensation.

The state is currently in a shortfall of employee drivers and barring the use of independent operators can only hurt the situation, some say. Some companies are considering separating their brokerage operations from their trucking business. This would make carriers responsible for handling operations with owner-operators through the broker.

About Western Truck Insurance Services

Western Truck Insurance Services is a commercial truck insurance agency with roots dating back to 1954. We have evolved into a highly respected, professionally managed, truck and transportation insurance brokerage. The hallmark of our organization is our desire to provide unparalleled service. We go way beyond what you expect to receive from an insurance brokerage. Equipped with state of the art automation, Western Truck Insurance can provide you with lightning fast truck insurance quotes, customer service, Insurance certificates, and coverage changes.

California Courts Declare Dynamex Ruling Applies Retroactively

Bob Holtzman

In California, the state’s Court of Appeal came to the conclusion that the state’s Supreme Court Dynamex decision was to be applied retroactively. The original case from earlier in the year spun off into legislation known as the AB5 bill, which limits the use of classifying workers as independent contractors rather than employees by companies in the state. For those in the trucking and freight industry, it has been anything but well-received as protests have even been planned out in response to the legislation.

The fallout from the Court of Appeal’s decision outlines that employers who rely on independent contractors may now be subject to potential liability claims for wage and hour disputes based on a legal standard that did not exist before April 2018.

For Dynamex, the California Supreme Court brought on a new test to determine whether a worker is considered an employee or an independent contractor. The new test added two new requirements that an employer must meet to establish the worker is, in fact, an independent contractor. To no surprise, employers are arguing that the new standard should only be applied moving forward.

Regardless of how it’s applied, the legislation is causing confusion around how employers should provide or pursue getting commercial truck insurance. Commercial truck insurance has policy limits that apply to specified workers, and having different or fluid classifications is hard to grasp.

In another case in the state, Gonzales v. San Gabriel Transit, Inc., a transportation driver brought a class-action suit on behalf of himself and other freight drivers, expressing that they were misclassified as independent contractors rather than full-on employees. The issue on appeal zeroed-in on whether or not the claim was suitable for class action certification. And while the transit company in question didn’t bring up the issue on appeal, the Court of Appeal initially considered if the Dynamex rule applied retroactively.

In this case, the court concluded that the Dynamex decision indeed applied retroactively based on the fact that it did not establish a new standard. Employers now have potential risk exposure that goes back years now following the decision (the limit is four years as this is the maximum statute of limitations for wage and hour claims).

Now, trucking companies and professionals in the industry are looking to January 1, 2020, the date that the AB-5 bill, spun out from the Dynamex court decision, will take effect. The bill expands on Dynamex, applying the test to all claims coming out of the Labor Code of California. The difference being that the Dynamex decision has been seen as only applying to claims coming from California Wage Orders.

About Western Truck Insurance Services

Western Truck Insurance Services is a commercial truck insurance agency with roots dating back to 1954. We have evolved into a highly respected, professionally managed, truck and transportation insurance brokerage. The hallmark of our organization is our desire to provide unparalleled service. We go way beyond what you expect to receive from an insurance brokerage. Equipped with state of the art automation, Western Truck Insurance can provide you with lightning fast truck insurance quotes, customer service, Insurance certificates, and coverage changes.

Recent Bills Create Trouble for California Truckers

Bob Holtzman

California Governor Gavin Newsom has been busy this year with deploying new state government bills surrounding truckers and other contract workers in the state. This fall, Newsom signed three bills into law that add more to the state’s hold on the trucking industry, adding more regulatory costs and compliance burdens on companies of all sizes, and possibly causing smaller companies to have to shudder.

Senate Bill 210, for example, creates a new emissions inspection program for commercial trucks. The law requires that a new Heavy Duty Vehicle Inspection and Maintenance Program for trucks and other heavy vehicles be implemented by the California Air Resources Board (CARB). CARB will also move forward with creating licensing standards for the inspection and repair shops throughout the state and oversee a new compliance certificate that truck drivers will have to keep with them in the vehicle. Additional fees will be put forth toward the new Truck Emissions Check Fund.

Clearing the Air

California air regulators have already put in motion that the trucking industry makes more efforts to be more energy-efficient and boast cleaner engines, cutting down on the smog. The Statewide Truck and Bus Rule set back in 2008 requires all heavy-duty trucks have new or retrofitted engines in order to operate on California roads. This major expense didn’t get a lot of legislative support, which is why the revised SB 210 bill was put in place to acknowledge the investments made by the trucking industry as a whole to upgrade the fleets on the road.

Trucking companies may now have to buy new equipment under another new bill, SB 44. The bill directs CARB to update its 2016 mobile source strategy to include a “comprehensive strategy for the deployment of medium-duty and heavy-duty vehicles.” The California senate wrote out an analysis of the bill, stating that CARB will be making its own new regulations to uphold and support more commercialization efforts of medium- and heavy-duty trucks that help to reduce greenhouse gases. A goal that has been speculated is that this will prompt manufacturers to produce more electric or hydrogen-based trucks.

Jeopardy on the Road

The bill that’s been getting the majority of the attention in the industry, however, is the recently passed AB 5, which will essentially end the practice of truckers working as independent contractors. Trucking firms will now have to hire drivers as employees instead of contract workers, making them responsible for everything from payroll taxes to workers’ compensation insurance, commercial truck insurance, and paid sick days, among other regular job perks.

Smaller companies are already starting to see the squeeze the bill is having on the industry, with some having to close up shop or lay off the majority of their drivers due to the new fees. The cost of trucking is built into the price of everything that is trucked throughout the state.

About Western Truck Insurance Services

Western Truck Insurance Services is a commercial truck insurance agency with roots dating back to 1954. We have evolved into a highly respected, professionally managed, truck and transportation insurance brokerage. The hallmark of our organization is our desire to provide unparalleled service. We go way beyond what you expect to receive from an insurance brokerage. Equipped with state of the art automation, Western Truck Insurance can provide you with lightning fast truck insurance quotes, customer service, Insurance certificates, and coverage changes.

Fleets: How They’re Growing, and What Operators Are Concerned About

Bob Holtzman

According to statistics from Government Fleet, smaller trucking fleets are taking over the roads, beating out bigger operations when it comes to picking up business. However, with growth among smaller fleets, a mix of issues such as training needs and replacement budgeting are causing a stir. Also, in the industry as a whole, a growing driver shortage tied with a surge in e-commerce is creating a major disparity in being able to serve customers on time.

As fleets grow and business picks up, stakeholders in the industry are scrambling to find ways to be effective and stay ahead of the curve. Here are some major issues operators are concerned about:

Driver Shortage

As mentioned above, the truck driver shortage is starting to be un-ignorable. According to the American Trucking Association, the industry is short on truck drivers by an estimated 63,000 positions. And even with a pay increase of more than 15 percent in the median salary range over the past six years, the demand for getting new drivers behind the wheel hasn’t been met.

To make matters worse, companies can expect to see that shortage increase, especially with an aging workforce. The average age of a driver hovers around 50 years old, and younger drivers aren’t applying as frequently as they used to.

Deteriorating Infrastructure

In 2016, one of the major campaign topics among both major parties had to do with infrastructure spending. It is clear that the country needs to put more effort into rebuilding our roads, bridges, and highways.

Safe and reliable infrastructure is important to the industry and crucial for trucking companies to be able to operate efficiently and safely. Efforts have been discussed to pump more funds into the industry, but there has yet to be any major legislation passed.

Safety

Speaking of safety concerns, truck drivers are witnessing a sharp rise in not only accidents on the road but fatalities. In 2017, more than 37,000 people died in auto crashes, a decrease by two percent from the prior year. However, commercial trucking made up 4,761 of those deaths, marking a nine-percent increase and hitting its largest level in 29 years.

Now, major distractions on the road are starting to influence these numbers as truck drivers and commuters are becoming more and more distracted by phone use. This puts a whole new layer of importance on the need for commercial truck insurance to protect companies and their drivers from claims related to accidents and death. While not everything can be prevented, it can be protected by maintaining comprehensive commercial truck insurance coverage.

Trucking Regulations

The laws and regulations affecting the industry are constantly under review and being revised. What’s more, different states see their own regulations change, like in California, where the recently passed AB-5 bill is upending what it means to be an independent contractor.

Electronic logging requirements are also starting to shape the industry as the electronic logging devices that are being mandated have been installed to help create a safer work environment for drivers. These devices help to accurately track, manage, and share the records of duty status of drivers.

Next, drivers are starting to see drug and alcohol sobriety tests be more intensely enforced. Updates to drug and alcohol testing, while beneficial for everyone on the road, including everyday commuters, can be costly, taking up space in an operation’s budget. Trucking fleets are having to find ways to keep budgets slim or even find room by cutting services.

One service that is being weighed by operations, but is still a necessity, is commercial truck insurance. Truck liability insurance should be kept as part of an operation’s budget outline and different commercial truck insurance brokers, like Western Truck Insurance, are able to provide personalized and form-fitting commercial truck insurance to fit a company’s needs.

About Western Truck Insurance Services

Western Truck Insurance Servicesis a commercial truck insurance agency with roots dating back to 1954. We have evolved into a highly respected, professionally managed, truck and transportation insurance brokerage. The hallmark of our organization is our desire to provide unparalleled service. We go way beyond what you expect to receive from an insurance brokerage. Equipped with state of the art automation, Western Truck Insurance can provide you with lightning fast truck insurance quotes, customer service, Insurance certificates, and coverage changes.