This publish is a part of a sequence sponsored by IAT Insurance coverage Group.

After the unprecedented growth that surged via the trucking trade following the COVID-19 pandemic, trucking firms are actually grappling with decrease supply volumes and extra capability as client demand declines.

Within the second quarter of 2023, internet revenue at trucking corporations throughout the nation fell between 22% and 69%^[1]. Moreover, as many as 67% of logistics professionals don’t count on any freight quantity improve within the first half of 2024.^[2] Shippers at present have the benefit, and each parcel and full freight charges are anticipated to both be unchanged or down within the first quarter.²

This shift is especially impactful on unbiased contractors who usually are not solely going through increased curiosity and coverage charges and hovering gasoline costs, but additionally inflation and growing operational prices whereas managing their very own employment advantages.

On this market, the fragile stability between managing prices and defending your small business is vital. Chopping prices shouldn’t equate to slicing corners with regards to insurance coverage as lack of protection in right now’s atmosphere might be further detrimental to you and your small business. As an alternative, take a complete take a look at your protection to make sure you are adequately protected within the occasion of a loss or enterprise interruption.

Switch your threat to guard your small business

One of many largest errors you may make is opting out of insurance coverage protection. Whereas it could look like a cost-saving measure within the quick time period, the dangers related to such a call may be extra pricey. Going with out insurance coverage jeopardizes your private financial savings and property ought to an accident happen.

Consider insurance coverage protection as a solution to switch threat away from your small business throughout this unpredictable time. The trucking trade affords varied protection choices tailor-made to the distinctive challenges confronted by drivers, and every protection serves as a vital line of protection in opposition to the uncertainties that accompany the evolving panorama.

Listed here are some key coverages to think about:

• Occupational accident protection consists of medical, incapacity, loss of life and different damage coverages comparable to surgical procedure and rehabilitation bills for accidents that happen on the job. The incapacity part may be particularly essential for drivers unable to work resulting from damage, permitting them to fulfill their monetary obligations throughout a interval of incapacity.

• Bodily harm protection – there are two key issues when deciding on applicable bodily harm protection – 1) the insurance coverage restrict of protection, and a pair of) the protection chosen. It is very important choose a restrict of insurance coverage that displays the worth of your automobile. Deciding on a decrease restrict to avoid wasting value, exposes you to an uncovered declare ought to your automobile be considerably broken or totaled in an accident. Bodily harm protection is available in varied kinds, from primary protection that repairs harm to your automobile to extra complete enhancements that may shield you from various kinds of losses comparable to downtime or mechanical breakdown. Contact your insurance coverage supplier to debate insurance coverage limits and protection that finest meet your wants.

Different strains of protection your small business could need to discover embrace informal labor staff’ compensation, occupational compensation, passenger accident protection and non-occupational accident protection.

Tailor your protection to your distinctive wants

The present freight recession is an plain problem, but it surely additionally presents a possibility for savvy fleet homeowners and drivers to implement cost-saving measures, fortify their operations and improve their insurance coverage to higher shield their enterprise.

IAT affords protection choices tailor-made to the trucking trade, like these listed above, solely via membership with the Nationwide Affiliation of Impartial Truckers (NAIT). NAIT members acquire entry to a variety of business and life insurance coverage in addition to healthcare coverages and unique offers on tires, lodges and gasoline.

ASK A LOSS CONTROL REPRESENTATIVE

Have a query on easy methods to mitigate your threat? Electronic mail losscontroldirect@iatinsurance.com for an opportunity to see your query answered in a future weblog.

By Scott Miller and Dave Logan

^[1] Reuters “U.S. trucking corporations see freight downtown reversing after dour quarter,” August 28, 2023.

^[2] CNBC “The worldwide freight recession will proceed in 2024: CNBC Provide Chain Survey,” November 7, 2023.

Matters
Contractors
Trucking