This put up is a part of a sequence sponsored by IAT Insurance Group.
After the unprecedented growth that surged by way of the trucking business following the COVID-19 pandemic, trucking corporations are actually grappling with decrease supply volumes and extra capability as shopper demand declines.
In the second quarter of 2023, web revenue at trucking companies throughout the nation fell between 22% and 69%[1]. Furthermore, as many as 67% of logistics professionals don’t count on any freight quantity enhance 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 are usually not solely going through larger curiosity and coverage charges and hovering gasoline costs, but in addition inflation and growing operational prices whereas managing their very own employment advantages.
In this market, the fragile stability between managing prices and defending your corporation is crucial. Cutting prices mustn’t equate to reducing corners relating to insurance coverage as lack of protection in in the present day’s setting may very well be further detrimental to you and your corporation. Instead, take a complete have a look at your protection to make sure you are adequately protected within the occasion of a loss or enterprise interruption.
Transfer your danger to guard your corporation
One of the most important errors you may make is opting out of insurance coverage protection. While it could look like a cost-saving measure within the brief time period, the dangers related to such a choice may be extra pricey. Going with out insurance coverage jeopardizes your private financial savings and property ought to an accident happen.
Think of insurance coverage protection as a option to switch danger away from your corporation throughout this unpredictable time. The trucking business gives numerous protection choices tailor-made to the distinctive challenges confronted by drivers, and every protection serves as a vital line of protection towards the uncertainties that accompany the evolving panorama.
Here are some key coverages to contemplate:
- Occupational accident protection contains medical, incapacity, dying 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 on account of damage, permitting them to fulfill their monetary obligations throughout a interval of incapacity.
- Physical harm protection – there are two key issues when deciding on acceptable bodily harm protection – 1) the insurance coverage restrict of protection, and a couple of) the protection chosen. It is vital to pick out a restrict of insurance coverage that displays the worth of your automobile. Selecting a decrease restrict to avoid wasting price, exposes you to an uncovered declare ought to your automobile be considerably broken or totaled in an accident. Physical harm protection is available in numerous 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.
Other strains of protection your corporation might wish to discover embody 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 simple problem, nevertheless it additionally presents a possibility for savvy fleet homeowners and drivers to implement cost-saving measures, fortify their operations and improve their insurance coverage to raised shield their enterprise.
IAT gives protection choices tailor-made to the trucking business, like these listed above, completely by way of membership with the National Association of Independent Truckers (NAIT). NAIT members achieve entry to a variety of economic and life insurance coverage in addition to healthcare coverages and unique offers on tires, inns and gasoline.
ASK A LOSS CONTROL REPRESENTATIVE
Have a query on the best way to mitigate your danger? Email 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 firms see freight downtown reversing after dour quarter,” August 28, 2023.
[2] CNBC “The global freight recession will continue in 2024: CNBC Supply Chain Survey,” November 7, 2023.
Topics
Contractors
Trucking
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