Tag: Trucking Operations

Lawmakers Looking to Get the Younger Generation Behind the Wheel

Western Truck Insurance

As part of a requirement under the bipartisan Infrastructure Investment and Jobs Act (IIJA), in 2022, the Federal Motor Carrier Safety Administration (FMCSA) established the Safe Driver Apprenticeship Pilot Program (SDAP). The goal of the three-year program is to help individuals ages 18, 19, and 20 explore interstate trucking careers and help trucking companies hire and train new drivers.

The program was started to help address the truck driver shortage in our country. The trucking industry is currently facing a shortage of more than 78,000 truck drivers coupled with a need to hire 1.2 million new drivers over the next decade to meet increasing freight demands, according to the American Trucking Associations (ATA).

Under the SDAP, a maximum of 3,000 drivers can participate in the program at any one time; however, there have been fewer than a dozen enrollees. The program’s failure is because of extra requirements by the U.S. Department of Transportation (DOT) that were not included in the original law.

Bill Introduced to Get Safe Driver Apprenticeship Pilot Program on Track

To help get SDAP back on track, Congressmen Rick Crawford (R-Arkansas) and Henry Cuellar (D-Texas) urged the DOT to take corrective actions that would improve participation in the SDAP and required DOT to provide Congress detailed reports on SDAP’s status and corrective actions taken to improve participation.

These changes directs the Secretary of Transportation to move forward with regulations to allow 18- to 20-year-old commercial motor vehicle (CMV) drivers to operate across state lines if the data does not demonstrate that those in the IIJA pilot program drive less safely than other CMV drivers.

“Building a 21st century supply chain requires a strong, vibrant, and growing trucking workforce,” said ATA President and CEO Chris Spear. This update will bolster new career pathways into interstate trucking while promoting safety and training standards that far exceed the bar set by states today. Congressmen Crawford and Cuellar’s efforts offer a timely and essential trucking workforce and supply chain solution, built off years of broad bipartisan Congressional support. By directing DOT to steer the Program back to the course Congress originally intended, and providing a path forward to a new trucking workforce to safely enter the industry, this bill will ensure that trucking has the talent it needs to meet the economy’s growing freight demands in the years to come.

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.

 

Tips for Commercial Truck Drivers: Making Safe Right Turns

Bob Holtzman

Commercial trucks are difficult to maneuver and stop. If a large truck and automobile collide, the accident could be catastrophic. Instances of accidents occurring include when truckers are making a right turn. Other vehicles, for example, attempt to squeeze along the right side of a truck to pass or make a right turn while a big rig is making the turn. In addition, when there are tight turns (often with obstacles like poles in the way), a commercial truck driver may swing outside the lane – either into the left lane or slightly over the double yellow lines into oncoming traffic – to orchestrate the turn. The swinging turn error may result in a rollover crash when it collides with an oncoming vehicle or a side-swipe of a passenger vehicle caught in the blind spot while attempting to pass.

The safety rules of commercial motor vehicles are clearly outlined, including when making right turns. Here are several driving trips to serve as a reminder for all truckers when making right turns:

  • Know well in advance when you’ll be making a right turn.
  • Give yourself at least 100 feet before the intersection to:
    • Start with the truck and trailer in the right line
    • Activate the right turn signal early to alert other drivers of your intention; don’t cancel the signal until you have completed the turn
    • Check your mirror on the left side for traffic
    • Proceed slowly
  • As you approach the intersection, keep the trailer in the right lane to block the road from cars trying to pass you on the right side as you pull slightly to the left to begin the right turn.
  • Do not swing wide left and cross over dividers. If you have to cross over into the oncoming lane you’re turning into, wait for any vehicles in that lane to pass by.
  • Never back up to complete a turn.

Watch your trailer every time you’re making a turn. The most common mistake new drivers make is forgetting to watch their trailer. If you’re unaware you hit something, like a stop sign, for example, you may be cited by the police for distracted driving and property damage.

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.

Soaring Prices Leave Owner-Operators with Tough Choices.

Bob Holtzman

Soaring prices across all avenues have left the trucking industry with plenty of decisions to make about cost-cutting. The trucking industry carries the weight of the country’s infrastructure and supply chain. It has traditionally consisted of large transportation companies, logistics businesses, and smaller owner-operators. Unfortunately, the industry is vulnerable to particular challenges, not the least of which is the rising fuel cost.

The Impact of High Prices

With soaring prices, including fuel costs, repair expenses, and the various types of truck insurance needed, these owner-operators may be struggling to make ends meet.

How Inflation Is Affecting the Trucking World

The trucking industry depends on diesel fuel to keep the trucks moving from the loading dock to the destination. Any time oil costs rise, diesel fuel costs rise as well. Additionally, the current inflation has pushed diesel prices to record highs. The higher diesel costs climb, the lower profits become for many trucking companies. These profits affect the owner-operators. Owner-operators are smaller companies that often don’t have the same profit margins or revenue volume as the larger trucking companies. Thus, they are more drastically affected when variables, like fuel costs, increase sharply.

Ideally, drivers would offset those increased fuel costs by being more selective about the loads they transport. It means they could opt for longer runs and higher-paying shipments. Unfortunately, supply chain issues and inflation have led to fewer available loads, smaller loads, and shorter runs. In some cases, drivers have to deadhead or run empty for nearly as many miles as the delivery run to pick up the load. These things prove costly, especially for owner-operators.

Direct Employment With a Carrier

For owner-operators, this is a difficult choice. Direct employment with a carrier means giving up their independent status, but it can save them significantly because the carrier they work for shoulders the fuel costs.  Most  carriers provide  the  truck insurance for their drivers, saving independent operators even more during these challenging times.

Negotiate Contracts That Include Fuel Surcharges

If you have established contracts with certain companies, you may be able to renegotiate those contracts to include a fuel surcharge for each load while diesel prices are so high. When negotiating new partnership contracts, have the surcharge as an automatic component. Some clients may want the option to revisit the surcharge when fuel prices come down.

Ride It Out

Larger trucking corporations, and even some owner-operators who are more financially secure, may decide to simply ride out this troubling period of soaring prices and moderate demand. Companies that have been in the industry for many years may have enough savings from more profitable times to withstand the strain for a while in hopes of improvement. Newer and smaller businesses may not. These companies may end up priced out of the market.

Leave the Industry

For businesses with little savings or no contingency plans, rising costs for diesel fuel, limited diesel supply in some areas, and the reduction of available loads may leave them with no choice but to leave the industry altogether.

Why This Perfect Storm Is Forcing Some Owner-Operators Out of the Industry

Owner-operators may be disproportionately affected by this economic downturn and trucking industry shift. Subsequently, these drivers often have fewer savings to fall back on and are paying their own expenses.

Unlike company drivers, who are often paid a flat rate for days spent down for repairs, owner-operators lose money while down for repairs. With supply chain issues affecting vehicle parts, diesel engine oil, and diesel fuel supplies, these drivers may be down for repairs or maintenance for much longer than they can afford. However, parts take months to arrive, with drivers unable to operate until they do.

Rising diesel fuel costs have already made the industry virtually unsustainable for smaller operators. When supply chain problems add to that challenge, it generates a perfect storm to ultimately force smaller owner-operators out of the trucking industry. It is often more cost-effective for these drivers to sell the truck and pursue other avenues instead of waiting for repairs and dealing with high fuel costs.

What This Means Going Forward

These challenges are changing the face of the trucking industry. The smaller shippers and owner-operator options are becoming scarce as the trucking industry shifts to a new dynamic of corporation-driven shipping with company drivers and fewer shipping options.

The current economic conditions and soaring prices are pushing the smaller operators out of the industry. Thus, it leaves the corporations that can sustain the financial burden in the short term. It isn’t likely that new shippers will enter the market for some time. However, the industry and the associated burdening costs must right themselves first. Larger companies can shoulder the costs, including diesel fuel,  repair and maintenance expenses, fleet safety, and insurance costs.. .

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!

Caltrans Freight Mobility Plan Trucking Initiatives

Bob Holtzman

Caltrans, California’s Department of Transportation, recently released its Freight Mobility Plan detailing it’s short- and long-term policies, strategies, and investments. The main focus of the Freight Mobility Plan points to the trucking industry, including parking, truck-only lanes, tolling, and the rise of autonomous trucking.

The trucking industry fuels the state’s economy and is in the middle of a five-percent economic growth. Even with COVID-19 spreading throughout the United States this spring before heavily impacting California this summer in the pandemic’s second wave, the California trucking industry has been operating an increased capacity. If anything, truck drivers have had more opportunities to get on the road and deliver much-needed goods to grocery stores and healthcare organizations.

The California Freight Mobility Plan highlights seven main goals. They include:

  • Economic prosperity
  • Environmental stewardship
  • Healthy communities
  • Safety and resiliency
  • Asset management
  • Connectivity and accessibility
  • Multimodal mobility

Let’s break down some of these goals for a better understanding of what Caltrans is trying to achieve.

Multimodal Mobility

Multimodal mobility focuses on maintaining, enhancing, and modernizing the multimodal freight transportation system by updating and improving network efficiency in the trucking industry. The plan calls for a study dedicated to truck-only lanes and includes a possible truck-only toll or truck bypass lanes.

If California chooses to use a truck-only toll lane, it will use the funds for infrastructure overhaul and mass transit systems.

Environmental Stewardship
Another target goal in the Freight Mobility Plan is to support strategies that minimize or mitigate environmental impacts from the trucking industry. The plan suggests a strong parking pricing program in denser areas to limit competition for curbside commercial freight parking. The goal highlights a reduction in truck vehicle miles traveled and emissions generated by looking for parking.

Safety & Resiliency
California’s highways and byways have been plagued with infrastructure issues for decades. From potholes to obstructions, the state’s roads are in significant need of repair as they have led to many trucking accidents and safety concerns. In the past decade, California has averaged more than 250 truck accident fatalities per year, underscored by the fact that the national average has continued to increase year over year.

While this has put a new emphasis on the need for trucking companies to invest in comprehensive Trucking insurance, it also points out the need for better roads and better safety measures, including parking.

Again, truck parking is addressed in this section. Rather than call out the need for more studies, Caltrans wants to execute the recommendation from the state’s 2020-2021 Parking Study and expand existing parking facilities solely meant for trucking.

Keeping Healthy Communities in Mind
The Freight Mobility Plan also looks at enhancing the overall health of the communities the trucking industry is most engaged in. The goal is defined as improving community health and well-being by reducing the negative impacts of the freight and supply chain movement across the state’s highways and surrounding communities.

One way this may end up affecting truck drivers is by losing specific routes. The plan suggests diverting trucking traffic from heavily used routes to alternative ones that are further removed from neighborhoods.

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!

Major Lawsuit Shines Light on Unfair Trucker Pay

Bob Holtzman

A Missouri-based trucking company settled two separate class-action trucking lawsuits with its truck drivers after battling in the nation’s Supreme Court for years. According to the suits, up to 26,000 current and former drivers are eligible for a $28 million payout from the company, New Prime Inc. Each trucking lawsuit involved truck drivers for Prime who said they were not given a fair trucker pay rate. A trucking lawsuit filed by a driver named Dominic Oliveira made its way to the Supreme Court, which unanimously sided with the trucking professional, and highlights unfair trucker pay in the trucking industry.

Pay-Per-Mile

The main issue that claimants in the lawsuits focused on has to do with a decades-old practice in the industry in which drivers are paid per mile, not on an hourly or annual basis. For some drivers, this means they are not even paid minimum wage in certain cases.

Truck drivers spend weeks out on the road for work and hours every day doing tasks that don’t put them behind the wheel, such as handling cargo or waiting at shipping docks. In fact, a 2016 survey details that nearly two-thirds (63%) of all drivers say they wait at least three hours every time they need to load or unload. This waiting time usually goes unpaid, which counters the U.S. Department of Labor’s regulation which states that any work which an employee is “required to perform while traveling must, of course, be counted as hours worked.”

Setting a Precedent for the Industry

The trucking lawsuit and its massive payout could set a new standard for truck drivers who say their companies aren’t paying fair wages. Something like this could in fact tip the scales in favor of trucking professionals who have been dealing with unfair pay throughout their careers.

America’s trucking industry, which sees revenues of nearly $800 billion annually, relies on owner-operators who own their trucks and may be contracted out with certain trucking companies. In fact, of the nearly two million drivers on America’s highways, about 400,000 of them are owner-operators. Prime, the company on the losing end of the trucking lawsuit, classifies its owner-operators as contractors, which means they are not privy to certain worker protections.

The Supreme Court, however, ruled in its unanimous opinion that Prime’s owner-operators were indeed employees. This lawsuit is one of many recent legal actions to highlight whether truck drivers deserve minimum wage for non-driving duties, such as waiting at loading docks.

A federal court in California slapped retail giant Walmart with a ruling declaring that it owed its drivers in the state nearly $55 million. The court said that Walmart violated the law when it didn’t pay truck drivers for rest breaks and other non-driving tasks. And in 2017, a Nebraska court said major trucking company Werner Enterprises was guilty of pay-practice violations and had to pay out $780,000 to 52,000 student truck drivers.

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!

AB-5 Update: Construction Truckers Covered

Bob Holtzman

In the ongoing legal battle surrounding California’s controversial AB-5 decision, which reclassifies truck drivers among other things, regional transportation associations have been looking for some guidance. The state’s Attorney general, trucking companies, independent trucking contractors, and Uber and Lyft are all involved in the matter, as all are trying to find common ground when it comes to classifying employees and obtaining the right benefits and insurance coverage.

But in recent weeks, the Western States Trucking Association, a non-profit trucking association that helps protects the rights of trucking companies, scored a major win against the AB-5 California mandate by forcing the government to renounce the plain language involved in the bill, and instead agree to treat construction trucking like all other motor carriers. While this AB-5 Win may seem small, it’s a step in the right direction for everyone from truckers to the companies they work for in the state.

As a result of this decision, all members of the construction trucking industry, a major player in the state’s economy, are now fully protected by the injunction against the ABC testing, which reclassifies workers.

The Dynamex Decision

In 2018, the Supreme Court of Los Angeles set the foundation for AB-5, which spurred on legislation that reclassified trucking professionals as employees instead of independent contractors. AB-5 codified the Dynamex decision and applied a test to any industry that was not given an exception in the law. Some of the exceptions included wholesale exemptions, meaning they could still use the traditional test.

However, only construction trucking was singled out for an exception that was worse than the ABC test itself. Under the terms of AB-5, construction trucking was called out to mandate an employment relationship between trucking independent contractors. Any time a trucking company sought to subcontract some or all of the construction trucking work on a particular construction trucking job, whether by using independent truckers or other trucking companies, they would be deemed the employers for all trucks working on that job.

The order now targeting WSTA’s complaint highlights that in light of the state’s interpretation of the law, their trucking members have no threat of something hanging over their heads when it comes to prosecution under the challenged provisions. As a result, WSTA members and construction trucking drivers are subject to the ABC test like everyone in the industry and are protected from the enforcement of the test.

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.

Layoffs are Part of a Troubling Trend in Trucking

Bob Holtzman

The trucking industry has been going through major reformation in recent years with the push to go more tech-savvy. Autonomous trucking operations are starting to take over the highways and byways in America with companies like Uber Freight and TuSimple planning more available freight deliveries in the coming months.

This push to go autonomous has some trucking companies and trucking professionals worried that the need for drivers will start to go away. But the entire trucking industry has started to see a major slowdown as a whole, adding to the doubts around truck driver job security.

In fact, according to the U.S. Bureau of Labor Statistics, the trucking industry saw more than 10,000 truckers lose jobs between July and September. The layoffs are a result of a major slowdown in manufacturing related to the US-China trade dispute that’s currently ongoing, marking a major indication of an entire economic recession in the U.S.

Long Time Coming?

Analysts have been showing concern around the slowdown in the economy for some time, pointing out the role that trucking is playing. Job growth overall has slowed down in recent months across a number of sectors with payrolls averaging about 161,000 per month compared to 223,000 the same timeframe last year. This has caused a stir among trucking companies who need to find ways to do everything from completing their current orders and budget for layoffs. Things like truck insurance and ordering new vehicles may have to be put on hold even though they may be pertinent to an everyday operation.

Trucking has historically been known for hiring and firing thousands of people at once, bringing in loads of people or cutting whole swaths at a moment’s notice. For instance, in the summer of 2018, the industry saw a boost of 37,000 jobs after loads of new trucks were ordered to keep up with the surge in everything from e-commerce to international trade. But with standstills at the U.S.-Mexico border for trucking freight and another standstill with China over trade tariffs, the trucking industry has been caught in the middle.

Recent layoffs also mirror an overall shift in the services offered through trucking, such as same-day or next-day delivery in the e-commerce space. There are still areas where the trucking industry is hiring regularly, such as courier and messaging service companies, which are seeing solid bumps in opportunity due to more activity on sites like Amazon and eBay.

National networks like UPS and FedEx, can provide the dedicated capacity to large-sized customers to make sure there are no gaps in freight service, but for smaller and mid-sized companies that lack scale, this trend could be dire in the long run, maybe even leading to the demise of a number of companies.

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.

Ways to Improve Your Fleet

Bob Holtzman

Managing a trucking fleet comes with a host of challenges for owners and individuals in the industry. From evolving technology to changes in legislation from state to state, trucking fleets have more than just the day-to-day to take care of.

There is a major amount of pressure that comes with maintaining a successful and efficient fleet. A fleet manager is responsible for purchasing vehicles, driver management, record keeping, and vehicle maintenance, among other things. While this can be a grind, there are a number of things that can be done to enhance the efficiency of a fleet.

Here are some things to consider when looking for ways to improve your fleet.

1. Insurance

First, it’s always important to make sure your fleet is running under the right truck insurance coverage. Having coverage such as truck liability policy and physical damage will keep your fleet covered during the time of a claim. Truck insurance is the first step to ensuring your company, employees, finances, and daily operations are protected moving forward. Not having insurance will open you up to major financial and reputational losses that could have devastating consequences.

2. Maintenance Strategy

Fleet managers need to be sure to strategize and create plans to make sure their vehicles are running in excellent condition. Larger truck fleets carry their own in-house service centers for maintenance to be conducted on a regular basis on their premises. If your fleet is a smaller business, it is more practical to hire out a company to keep your trucks serviced. No matter who’s taking care of your trucks, it’s important to get them taken care of on a regular schedule to keep efficiency up.

3. Manage Your Drivers Effectively

Fleet managers need to be able to communicate with their drivers effectively. Communication in the trucking industry is crucial for any fleet. Truck drivers need to be able to reach out to their managers easily and the flow of information needs to remain open and efficient. One way this is being done is by installing electronic logging devices (ELD’s) that monitor driver behavior; tracking if a driver is frequently speeding or breaking excessively.

Through ELD’s and regular communication with drivers, fleet managers can keep everything running smoothly.

4. Evaluate Your Assets

Fleet managers and vehicle technicians should be aware of the status of their assets. Beyond knowing your vehicle’s conditions and current service parts inventory levels, it’s also crucial to completely have a grasp on how every vehicle is used as well as how its components work. For this, it’s important to evaluate your fleet’s assets on a regular periodic basis, which can help you make adjustments to current business demands.

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.

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.

How CAB Reports Function in Underwriting Trucking Operations

Bob Holtzman

When it comes to trucking operations, having truck insurance is an important component to keep everything moving in a transparent way. However, if a motor carrier’s driving history is flagged with having the same number as another company, finding the right coverage can be increasingly difficult.

Interpreting risk information should be in every carrier’s understanding of how motor truck cargo insurance works, especially in terms of understanding risk factors and underwriting motions. Certain determinations are made by tools like the Central Analysis Bureau, or CAB, and the FMCSA’s Safety Measurement System (SMS).

Here are some questions that are usually brought up when a CAB reports risk information in underwriting.

Under what circumstances would the CAB report a prior-used VIN?

Typically, an owner-operator leased to an insured would operate under a permanent lease. If the owner-operator, however, has their own authority, this may show up as “during.” Also, the insured may have already de-leased an owner-operator or sold the equipment during the period in question, which would trigger the CAB.

If a company’s DOT number has been captured by a DOT officer mistakenly, which is uncommon, it can be corrected by a company challenging the inspection. Also, a company may be operating under multiple authorities, which would trigger a shared VIN notification to the CAB.

If an owner-operator is hauling for the insured under their authority, is inspection data going to be reflected on the CAB report?

Data for inspections is captured under the Department of Transportation number for both the company the diver is operating under at the time of inspection as well as the driver’s own record. This kind of information is kept stored in a separate database so confusion is limited. Driver data is typically only available to individual drivers and their potential employers.

Regarding trucking insurance, what underwriting actions are taken when CAB motions that an insured or applicant shares a phone or email address with multiple carriers?

Something like having a shared number or email address, or even physical address, doesn’t necessarily mean shared ownership, but this is something that will be deemed as needing to be looked at. Usually, a common reason behind shared contact information is when a permitting office lists their number and address instead of the trucking company’s information.

Another reason behind sharing a number or address is when smaller operations share an office of dispatch. The CAB will look at ownership and make sure it’s separate and that there is no shared use of drivers or equipment.

What’s more, there may be outdated information listed with the FMCSA, which needs to be updated on a biannual basis.

Understanding underwriting risk factors is important for motor carriers in gaining motor truck cargo insurance. It’s vital to address any anticipated concerns at the time of submission as anything looked over or missed may bring about a more limited chance of gaining insurance.

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.