commercial truck insurance Archives

AB-5 Signed Into Law: What That Means for Truck Drivers

October 8, 2019January 2, 2021Bob Holtzman

This past September, California Governor Gavin Newsom signed into law new legislation focused on making things a little more difficult for independent owner-operators, such as truck drivers and gig economy workers, possibly even putting them out of business.

The AB-5 legislation originally passed the California State Assembly back in May and was passed by the state Senate on September 10. What it does is move last year’s Dynamex California Supreme Court decision into law, which established an ABC test to determine the status of an independent contractor that could essentially eliminate the owner-operator model in California, and disrupting everything from investing in commercial truck insurance, such as general liability insurance, and the sharing economy.

Taking effect starting January 1, 2020, those in the trucking industry could find themselves in the crosshairs. So, what does this all mean for trucking professionals?

Trucking Companies and Professionals in AB-5

While there is little proof that trucking professionals and companies have abused the independent contractor model in the state, AB-5 is still in place to essentially paint with a broad brush in banning the use of independent contractors rather than deal with individual abuses.

The state’s trucking industry has been trying to work with legislators to find exceptions for legitimate independent contractors who follow the rules. Many workers are exempted from this ruling, like doctors, dentists, and engineers, but not trucking or gig economy workers, like those working for Lyft or Uber.

The new bill does not necessarily distinguish between a driver who’s an independent contractor under a truck lease-program and someone who owns their own truck. Those opposed to the ruling argue that this essentially destroys the independent contractor model for trucking.

In California, there are more than small 136,000 trucking companies that are locally owned with small fleets and independent drivers who take care of their operations. This means that motor carriers and owner-operators are left in the lurch trying to figure out a strategy for what they can do now.

California is currently experiencing a truck driver shortage, much like the rest of the nation, but maybe even more so, since the state is highly dependent on the flow of goods coming from Mexico or Arizona. The new measure may aggravate the issue at hand by removing thousands of drivers from the road because of de-classifying them.

Currently, there are lawsuits that have been filed to fight the issue and look for ways to exempt these companies and their drivers from the classification. Additionally, companies like Uber, Lyft, and DoorDash, all dependent upon independent contractors, have invested in a collective of $90 million to bring this issue to the ballot during the next voting season.

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.

FMCSA Proposes New Rule to Increase Service Hours Flexibility for Drivers

September 17, 2019January 2, 2021Bob Holtzman

In August, the Federal Motor Carrier Safety Administration (FMCSA) published a long-awaited proposal for changes to hours of service rules that would help add more flexibility for truck drivers on the road.

These hours of service rules, first adopted in 1937, specify the permitted operating hours of commercial truck drivers and have gone through multiple revisions. The newer mandate requiring electronic logging of hours that took effect in December 2017 featured some of the shortcomings in how these rules are applied in the everyday driving habits of truckers.

The FMCSA, through an advanced notice period of proposed rulemaking, asked for comments from the public on how to help add flexibility in realistic ways to the industry. Based on those responses, the regulatory body came up with a new rule to increase service hours flexibility.

What to Know

The FMCSA came up with five components to the rule change, helping to keep safety in the spotlight. Trucking companies can face claims from truck drivers if they feel overworked, leading to accidents or injuries on the road. Commercial trucking companies can take out commercial truck insurance plans to make sure they are covered in the event of a professional claim, especially with something like workers’ compensation insurance.

And while protecting against claims is a must for trucking companies, it’s good to know what changes were made to the hours of service. They include the following:

Changing the 30-minute break requirement to require a break after eight hours of uninterrupted driving time, not on-duty time, and allowing the break to be satisfied by a driver using on-duty/not driving status, rather than off-duty status. If a driver has to take a break to add fuel to their truck or use the restroom or grab a quick bite, that can count as their required break.
Allow drivers to split their required 10 hours off-duty into two period. This can include one period of at least seven consecutive hours in the sleeper berth and the other period of not less than two consecutive hours, either off-duty or in the sleeper berth. This would allow for a 7/3 or 8/2 split. Neither period would count against the driver’s 14-hour driving window.
Allow one off-duty break of at least 30 minutes, but no more than three hours, that would pause a truck driver’s 14-hour on-duty window, provided the driver takes 10 consecutive hours off-duty at the end of the work shift. This would alot drivers to take up to a three-hour break to bypass rush hour, without affecting their on-duty time.
Modify the adverse driving conditions exception, adding two hours to the maximum window during which driving is allowed. The current rule allows for that extra time but it still has to be within the maximum 14-hour workday. The proposal would allow that workday to be lengthened to as much as 16 hours in instances where things like extreme weather or major traffic congestion become a factor.
Change the short-haul exception available to certain commercial drivers by extending the drivers’ maximum on-duty period from 12 to 14 hours and lengthening the distance limit within which the driver may operate the wheel from 100 air miles to 150 air miles.

The FMCSA expressed, through a press release, that the proposed rule wouldn’t increase driving time and instead would continue to prevent trucking professionals from driving more than eight consecutive hours without at least a 30-minute change in duty status. What’s more, the FMCSA says the proposed changes are estimated to provide $274 million in savings for the economy in the United States as well as American consumers.

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Trucking Through the Mountains? Make Sure to Practice Safe Driving

September 4, 2019January 2, 2021Bob Holtzman

Anyone getting behind the wheel of a big rig, no matter if they’re a seasoned trucking veteran or a newbie on the road, needs to be on their guard when driving through mountain ranges of any kind. From slick roads to low visibility to other dangers like falling rocks, there are plenty of risks waiting around every twisting turn for truck drivers.

Slick roads, weather, terrible road conditions, and distracted driving can all lead to major problems, including accidents and fatalities on the road. It’s important for truck drivers and the companies they work for to take heed of important tips that can help everyone and everything stay safe through a mountain range.

Keep an Eye on the Weather

Before a trip into and through the mountains, it’s important to know the weather along your intended route. There are so many weather apps available today to stay informed and help prepare for a trip. Weather conditions can change dramatically, and unexpectedly, with altitude, If tire chains are allowed, or required, make sure to have the correct number and size of chains.

Drive Slow and Steady

Truck drivers should be extra cautious when driving up or down hills, and especially when the road becomes windy. Pay attention to grade signs as they are meant to provide the right information needed to operate the truck safely. A general rule of thumb is to travel down the grade in one gear lower than you traveled up the other side. When on the ascent, choose a gear where you can pull the grade without having to downshift and maintain a steady mid-range RPM.

Be Prepared

Truck drivers should look into the status of their brake system. Having a properly maintained brake system, including the engine brake, and tires are critical maintenance components to travel through the mountains safely and effectively. Most roadways will have brake check areas for drivers to pull off to the side and adjust the brakes, if need be, before heading down a descent.

Runaway Lanes

Speaking of pulling off to the side, truck drivers should take advantage of runaway lanes on the sides of routes. If you are losing control or have lost control of the vehicle on a descent, make sure to use these lanes. They are available for the safety of the driver, the truck, and everyone around on the road.

Keep from Tailgating

No one likes to drive with someone directly behind them, right on their bumper. But when it’s a large truck carrying plenty of heavy cargo, this is even more important to note. Truck drivers should be sure to not tailgate and stay back with a significant amount of distance between them and the car ahead.

Staying Safe with Insurance

Truck drivers should be sure to invest in effective commercial truck insurance which can provide the right level of protection following incidents on the road. Trucking companies should make sure to look over their current level of commercial truck insurance and adjust accordingly to keep trucks, cargo, drivers, and others on the road protected.

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In 2019, Independent Truck Drivers Are Earning More Than Company Drivers

August 20, 2019January 2, 2021Bob Holtzman

Striking out on your own and working in the gig economy may seem like a risky endeavor for people working in tech or the arts. But one area where being self-employed is actually coming out ahead is in the trucking business. Self-employed truck drivers, also known as owner-operators, earn more per hour and work longer, or have more business opportunities, than company drivers.

According to the Bureau of Labor Statistics, in a May 2018 report, the average truck driver salary hovers around $43,680 a year. The average salary for owner-operators, which make up about 11 percent of the trucking industry, comes in about 5 percent higher. Plus, in the spirit of making their own schedule, these drivers can take on more work as they please.

Let’s take a better look at what’s impacting this trend.

Trending Up

Among workers across all jobs in the industry, self-employment has been heading lower on a steady basis, even with increasing numbers during economic downturns when workers who are laid off turn to self-employment. Considering other factors such as age, education, sex, and family status, self-employed truck drivers earn about five percent more per hour compared to company drivers, bringing their average salary up to about $45,500 annually.

But factoring in more availability to take on more work and you have more earning potential and a more attractive opportunity for drivers to go out on their own. The income and hours advantage among the self-employed does not necessarily hold up in other industries that employ large numbers of employees with the same kind of demographic profile. Think mining, food service, construction.

Not Guaranteed

This advantage for self-employed drivers may not be a uniform opportunity for all in the industry. While it may be attractive to work for yourself, make your own schedule, and earn more money, getting additional jobs and a steady stream of work may not be a guarantee.

The best owner-operators have the potential to earn more money per hour, but some actually end up taking a loss compared to company drivers. The top group of owner-operators earns 52 percent more per hour than their company driver counterparts, which comes out to about $19,000 more. But the bottom level of drivers actually earns as little as 30 percent less than regular drivers.

What’s more, you have to be willing to work longer hours if you want to be self-employed on the road. On average, owner-operators put in an extra hour a week behind the wheel. It may not seem like much, but it’s the pace that drivers have to keep up with in order to earn more that may grind away at them after a while.

Also, there are risks built in when it comes to working as an owner-operator. Self-employed drivers are more exposed to variables in the trucking industry that could affect their opportunities and wages, plus they have to pay their own commercial truck insurance and take care of their own maintenance fees. If a mechanical issue arises, commercial truck insurance won’t be able to protect an owner-operator. But even with these risks, there are owner-operators willing to go it alone and boost their own opportunities. Being a self-employed driver can be a lucrative endeavor that also provides an enviable level of autonomy that others want.

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Driver-Facing Cameras in Trucking Operations: Yea or Nay?

July 16, 2019January 2, 2021Bob Holtzman

The commercial trucking industry is in the middle of a major overhaul right now. From a massive labor shortage to the electric and autonomous truck markets developing at a fast pace, trucking isn’t the same as it has traditionally been, and is expected to continue in this way in the coming years.

One trend that is kicking up some controversy is the installation around installing driver-facing cameras in truck cabins. This issue has created issues around privacy and accountability and has even opened up new stipulations around commercial truck insurance.

Front-facing cameras, recording what’s going on surrounding the truck, have been used for years now, which has helped with security and legal issues, such as proving fault in something like an accident involving a commercial truck. But does this technology cross the line? How effective can it be?

Drivers as Assets

Technology is painting a picture of a driverless future as companies like TuSimple and Uber are already officially running their autonomous trucks on highways for long-haul projects. But until this becomes a full-scale reality, drivers are still the number one asset for the industry, especially for short-range projects, which will still see truckers in the driver’s seat even with self-driving trucks on the road.

And while truckers are valued in the industry and play a pivotal role in the entire freight industry when it comes to preventing a backlog, telling them cameras will be watching them may not be well-received. In an article from American Trucker, the consensus from those doing the driving aren’t on board for this addition to their operations. And with a shortage of 180,000 drivers expected by 2024, the industry can’t afford to lose any more favor.

Short-Term Effects

Installing driver-facing cameras that monitor drivers with the goals of monitoring performance and raising accountability may have short-term effects, such as causing them to drive more carefully or reducing their speed. But over time, drivers may forget the cameras are there or simply turn a blind eye, so to speak, when it comes to having their every move being watched.

On the other hand, for trucking operations, driver-facing cameras can be beneficial for a number of reasons. These recordings can be used as coaching tools to help with onboarding and adjusting performance expectations. And when it comes to accidents, driver-facing cameras can also help with proving fault or innocence when related to commercial truck insurance claims in incidents.

Other Considerations

Trucking companies can begin looking for feedback from driver recruiters and safety managers to highlight the pros and cons of having this kind of surveillance installed. Will it make the job easier or more stressful? What’re the long-term effects of how these cameras can help with performance?

Finally, the drivers themselves should also be considered in decision-making since it will be their jobs and reputations on the line. Surveyed drivers in the recruiting process can be asked if they would consider not taking a job if it included working under the watchful eye of a camera. Bottom line, discussions should continue and opinions should be expressed during planning and execution of this kind of change to the industry.

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FMCSA Establishes Drug and Alcohol Clearinghouse for Commercial Drivers

June 4, 2019January 2, 2021Bob Holtzman

The Federal Motor Carrier Administration (FMCSA) has recently announced it will be establishing the Commercial Driver’s License (CDL) Drug and Alcohol Clearinghouse, a new database that will include information related to violations of the U.S. Department of Transportation (DOT) and its controlled substances and alcohol testing program.

Currently, the Clearinghouse rule requires FMCSA-regulated employers, Medical Review Officers (MROs), Substance Abuse Professionals (SAPs), consortia/third-party administrators (C/TPA), and other service agents to report to the Clearinghouse information that’s notable in violations of the drug and alcohol regulations. These are specific to regulations in 49 Code of Federal Regulations, parts 40 and 382 by prospective employees as well as current employees.

What’s Required and What’s Expected

The main issue with the Clearinghouse is that it’s trying to help trucking companies be prevented from hiring employees who have been prohibited in the past or are currently prohibited from operating a commercial vehicle based on DOT drug and alcohol program violations. If trucking companies violate these terms and regulations it can spell trouble for them legally and in business.

That’s why having a commercial truck insurance plan in place to protect against liabilities, such as hiring employees with checkered pasts, is vital to keep operations running smoothly and above board.

Pre-Employment Checks

Companies will have to check in with the Clearinghouse for all new hires to see if they have any drug and alcohol violations that keep them from performing safety-sensitive functions. This means that the driver in question must be registered with the Clearinghouse as well.

The Clearinghouse will make sure to provide FMCSA and employers the important tools to identify drivers who are prohibited from operating these vehicles, so as to avoid this kind of issue. Having a prohibited driver hired on can create not only conflicts from a regulatory standpoint but can also create a number of risks for the road, putting the safety and overall well-being of others out there in the driver’s hands.

The Clearinghouse will also help to ensure that drivers receive the required evaluation and treatment before operating a CMV on public roads. More specifically, information maintained in the Clearinghouse will enable employers in the trucking industry to spot drivers who commit a drug or alcohol program violation while working for one employer, but who fail to inform another employer (such as a contractor would).

Records related to any drug and alcohol program violations will be kept in the Clearinghouse for five years, or until the driver in question has completed the return-to-duty process.

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How Truck Drivers Can Stay Protected from the Sun

May 7, 2019January 2, 2021Bob Holtzman

Being a truck driver presents a number of risks while traveling from highway to highway. Car wrecks, loss or damage to freight, engine trouble and more are just some of the ways in which a day behind the wheel can take a turn for the worse. But one risk that isn’t discussed as thoroughly is damage to a truck driver’s skin after years on the open road.

Truck drivers literally face irreparable damage, including skin cancer, every day they get behind the wheel and head out for long hauls. Trucking companies should keep information available for their drivers and avoid liability risks related to claims of skin cancer or eye issues. Having commercial truck insurance can help protect trucking companies, but keeping drivers protected first should be the goal. It’s important to sport the signs of sun damage and make moves on limiting risk over time.

Here are some ideas on how to stay protected from the sun.

Know the Signs of Sun Damage

First, it’s important to be aware of sun damage and look out for its effects early on. Even minimal sun exposure to one side of your face can cause skin cancer to develop and cause more harm over the years. Drivers should be looking out for spider veins, skin spots, and freckles that are out of the ordinary, and check on skin texture too.

Too much sunlight causes the collagen in your skin to break down, which prevents your skin from creating new collagen to repair itself over time. Even if the side effects of sun exposure are discovered, it may be too late to take action.

Use Sunscreen Every Day

Step number one is making sure to lather up on good quality sunscreen every single day, no questions asked. It’s a simple step that drivers can do right before they take off for the day. Your windows may be able to filter out the sun’s UVB rays, but they won’t do anything to stop the more harmful UVA rays from coming in. This is why we suggest a broad-spectrum sunscreen because it offers up protection for the skin from both types of solar radiation. Start out with an SPF 30 then move up from there if need be.

Avoid Peak Hours

Between 10am and 2pm, the sun’s rays are at their strongest. While driving can’t be avoided during those hours every day, it is important to take extra care of your skin. Try to take walks and breaks during the morning and evening hours to avoid sunlight, but still remember to put on sunscreen and stay in the shade as much as possible.

Change Your Clothes

While this is a good rule of thumb anyway, changing up what you wear can be helpful in keeping sunlight away from you and damaging your skin further. A simple way to protect yourself from the sun’s harmful effects is to wear clothes that shield your skin. During the summer, try to wear long-sleeved shirts, long pants, and hats that cover face and neck.

Wear Some Shades

Eye care is just as important as skin care when it comes to sun damage. Don’t overlook eye care when it comes to this part of the job as you need to be able to see well when you’re taking care of your operations. Invest in some high-quality sunglasses that polarize the sunlight coming through and filter out the bad rays. This will help to keep visibility high while maintaining safety from the sun.

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The Biggest Reasons Why Truck Drivers Quit

April 2, 2019January 2, 2021Bob Holtzman

The trucking industry is in the middle of big upheaval. With the advent of sophisticated technology, such as autonomous trucks and a focus on data, truck drivers are finding their roles changing at a rapid rate. In fact, the industry is already in the middle of huge changes in the turnover of trucking professionals creating the need to fill vacant and soon-to-be vacant roles.

As the older generation of truck drivers begin to retire the American Trucking Association puts the number of truck drivers needed in the next few years between 60,000 upwards of 100,000. But even without the phasing out of one generation and the boost in tech-driven trucks, the industry still sees a great deal of its drivers quit due to a number of avoidable reasons.

Here are some reasons why truck drivers tend to call it quits.

Money Issues

Pay is always a huge problem in the trucking industry. Drivers can see crazy schedules keeping them up long hours and away from home for days or even weeks at a time depending on their routes. One thing that makes this kind of life worth it is a decent wage, but some drivers find that that may not be enough. A driver can never fully tell what they’ll make week-to-week, which only adds more stress to an already stressful job.

More Time at Home

Piggybacking off the previous notes, drivers can end up being away from their loved ones for longer than they want to. While being away for a certain amount of time is in the job description, it can take a toll on a driver’s home life and road life. Trucking companies can help by accommodating home life schedules or time off requests that allow for more agreeable time off.

Lack of Insurance for Drivers

Commercial truck insurance plays a role on both sides of the coin; for both the trucker and the company they work for. Having the proper commercial truck insurance can provide the financial protection a company needs when an incident occurs on the road or a when a claim is made by a professional driver. When a company doesn’t invest properly in commercial truck insurance it may signal the driver that management is not looking out for the well-being of everyone in the operation.

Appreciation

Many drivers walk away from their job because they feel let down by management, and not appreciated enough for the grueling job they do every day. Drivers want to know what’s expected of them, to see growth in the company they work for, and how it affects their future. To address this issue, companies and leaders need to deliver on their promises and commitments. Communication is huge and should be a major component of the daily operations side of a trucking company to keep transparency and support open and fluid.

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Why It’s Important for Truck Drivers to Have Roadside Assistance Coverage

March 12, 2019January 2, 2021Bob Holtzman

One of the worst situations a trucking professional can be in is being stranded on the side of the road without help coming their way. It’s even worse when a tire fails or an engine burns out while hauling across the country and having to pull over in the middle of nowhere.

Trucking companies and their drivers need to know the risk of operating without specialized commercial truck insurance programs, such as roadside assistance. Having a 24-hour roadside assistance plan covering your vehicles while they’re on the road will add peace of mind and a comprehensive solution to keeping everything safe. From towing to flat tires, mobile mechanic service to a simple jump start, commercial truck roadside assistance is a must-have for trucking companies.

No one can predict when something will go awry while behind the wheel. If you find yourself stuck on the side of the road with no help coming there’s probably a lot to consider. Will you get to your pickup spot on time? Will you be able to drop off in time? What about the cargo you’re hauling—is it something that needs to be kept at a certain temperature?

There are so many factors to consider when it comes to having roadside assistance. Even just being stranded can be a taxing on a truck driver as it keeps them away from home as well as putting their job in possible jeopardy.

What Our Roadside Assistance Can Do For Your Operation

Western Truck Insurance offers commercial truck insurance with roadside assistance services that can help to answer the call when something doesn’t go according to plan. This is a great and inexpensive service that won’t be taxing on your company’s budget and will help to keep everything moving without having to worry about forking over too much. Here are some of the benefits you get with roadside assistance:

Unlimited Roadside Assistance
Towing – up to 50 miles per disablement
Flat Tire Assistance
Tire Replacement Assistance – up to $100 per disablement
Mobile Mechanic Service
Vehicle Winching / Extricating
Custom Trip Routing / Navigation Assistance
Vehicle Jump start
Hotel and Travel Discounts
Oil, Fluid and Water Delivery Service
Lockout / Replacement Key Services – up to $100
Fuel Delivery Service – up to 30 gallons of fuel
Concierge Service – restaurants, lodging, truck stops, fuel stops, etc.
Road America’s Savings Connection Program – save on prescriptions, car rentals, theme parks and more

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Will California Require Truck Drivers to Take Unpaid Rest Breaks?

March 5, 2019January 2, 2021Bob Holtzman

In December of 2018, a ruling from the Federal Motor Carrier Safety Administration (FMCSA) stated that California trucking companies, while still requiring their employees to take rest breaks, are exempt from providing truck drivers paid rest. The ruling has been controversial to say the least and has already been set up to be challenged in court. Teamsters have already sued over the decision and petitions have been signed to reverse the ruling.

According to the FMCSA, there have been more crashes involving trucks in the northern California area, heading into Oregon. This has been due, in part, to a decline in parking. If a trucking professional can’t park and take a break, they simply keep on driving. This is a reason why it’s important for commercial truck insurance to be in place to protect drivers, their trucks and their companies.

The FMCSA holds the position that paid rest breaks reduce productivity, so not paying for them will motivate drivers to be more efficient in their work. Teamsters unions, on the other hand, are arguing that federal laws can’t overrule California’s state labor laws. Another argument from teamsters is that not having breaks covered will actually motivate drivers to forgo taking the right amount of rest while they are behind the wheel, causing them to decline in health, focus and safety.

Currently, the American Trucking Association has stated that it wants to do away with rest breaks altogether, promoting the idea that rest breaks would be bad for corporations. But attorneys for those who are suing say that the ATA’s arguments related to loss of productivity are not really supported.

In California, state labor laws stipulate specify that workers should get a 30-minute meal break for shifts longer than five hours and also that transportation workers rest for 10 minutes every four hours. The U.S. Court of Appeal for the Ninth Circuit in California ruled that carriers in the state must make sure that truck drivers get the right amount of rest and meal breaks.

The ATA has appealed to Congress before when it comes to these rulings, pleading over and over that rest breaks are bad for business. They’ve even gone as far as looking for support from the Trump Administration. The only question now is how will this all play out in court? Will it be a long, drawn-out fight?