7 Costly Mistakes to Avoid When Purchasing Commercial Trucking Insurance

Making a mistake when purchasing commercial trucking insurance can be costly. Here are seven common pitfalls that can significantly impact your premiums and overall coverage:

Mistake #1: Leaving Erroneous Info on Your SAFER Report

Your SAFER report, maintained by the FMCSA, contains crucial safety inspection information about motor carriers. Despite the effort, however, the information is not immune to errors. Insurance underwriters rely on this data to calculate your premiums, so any inaccuracies can inflate your costs. Regularly review your SAFER report and request corrections for any errors to ensure fair premiums.

Mistake #2: Ignoring Errors on Your Loss Runs

Similar to the SAFER report, your loss runs, which detail claims paid and reserves, can also have mistakes. These inaccuracies can skew your loss ratio and affect your premiums. Promptly address errors with your insurer to maintain accurate loss runs and manage your insurance costs effectively.

Mistake #3: Inaccurate Vehicle Lists

Errors on your equipment list can lead to overcharges on your physical damage insurance. Ensure your list is up-to-date and accurately reflects your equipment's condition and value. Incorrectly listed or depreciated values can result in higher premiums, so meticulous record-keeping is essential.

Mistake #4: Retaining Drivers with Poor Records

Employing drivers with unacceptable driving records can lead to significant surcharges on your premiums today, and potentially catastrophic liabilities tomorrow. The legal theory of "negligent entrustment" holds you responsible if a driver you hired causes a serious accident. Regularly review your drivers' MVRs and remove those with poor records to safeguard both your premiums and your business.

Mistake #5: Choosing the Wrong Insurance Carrier or Policy

Opting for the cheapest insurance policy can backfire if it comes from a substandard provider. A weak policy with numerous exclusions or a problematic insurance carrier can result in unpaid or delayed claims, damaging your relationship with shippers and possibly ruining your business. Invest in quality insurance from a reputable provider to maintain trust and reliability with your clients.

Mistake #6: Poorly Designed Insurance Program

An improperly structured insurance program can lead to overpaying. Consider higher deductibles or alternative risk financing options like captive insurance. Adjusting your deductible and implementing smart risk management strategies can help reduce your premiums. If you have a good safety record, leveraging higher deductibles to lower premiums can be particularly effective.

Mistake #7: Working with an Inexperienced Agent

A knowledgeable and honest insurance agent is invaluable. Inexperienced or unscrupulous agents can lead you astray, costing you significantly. Partner with seasoned professionals who understand the intricacies of commercial trucking insurance. The AssuredPartners Transportation team is highly skilled at helping America's truckers get reliable coverage.

Avoiding these common mistakes is important for effectively managing your commercial trucking insurance costs. To safeguard your business, regularly review and update your documents, choose your insurance partners wisely, and implement sound risk management practices.