March 22, 2022

Has Your Company Grown Enough to Save on Insurance?

Insurance is an essential component of running a transportation business, whether you’re a big company or small. With insurance, you get peace of mind for yourself as well as your drivers. But, like anything, insurance costs money and you may be asking yourself questions like:

“How much is too much?”

“Does owner operated insurance make more sense?”

“Can I afford umbrella insurance?”

“Has my company grown enough to save on bundled insurance?

A qualified agent can help you sort through different insurance policies and answer these questions. For right now, we’ll focus on the last one.

Any More Than One is a Fleet

Fleet insurance assesses and evaluates the risks for the entire fleet since these risks are unique compared to owning a single truck. You’ll need to speak with an insurance agent to determine which policy is right for you and the costs associated. Your insurance agent will likely ask questions like:

  1. What do you haul?
  2. How far do you typically drive?
  3. How much is your truck worth?
  4. Your age and CDL experience

The average semi truck insurance costs between $3,000 and $5,000 a year for owner operators that lease on to a motor carrier. Motor carriers require the owner-operators to purchase bobtail or NTL insurance. Meaning that truckers with their own authority will be responsible for primary liability. Let’s take a look at it in numbers:

  • Primary liability average cost is between $5,000 and $7,000
  • General liability average cost is between $500-$600
  • Umbrella policy average cost is between $500-$700
  • Cargo insurance average varies by state and load.

With owner operated insurance costing your drivers anywhere between $8,000 and $14,000 annually, your drivers may not be able to afford insurance on their own. As a result, you may lose longtime drivers and potential drivers may be deterred by the cost. Your insurance broker will be able to give you different quotes for different coverages. Just note that Primary Liability is required by law and Cargo Insurance are all required by carriers.

Benefits of Fleet Insurance

Of course, you train your drivers well and prepare them for challenges. Still, your drivers, like any drivers on the road, are subject to dangers posed by others as well as threats like theft. Having fleet insurance can help protect your goods and cargo in the event that your driver’s load is stolen.

Trucking insurance doesn’t just keep your drivers safe, it keeps your cargo safe too. Loss of revenue is one of the fastest ways to hinder growth. With the right insurance, you can get your vehicles back on the road faster and recoup any losses associated with cargo damage.

Most insurance companies offer additional education and training for drivers under their policies to ensure that they have the right knowledge to operate a rig. And there’s no such thing as a driver with too much training. Ask about any discounts they may offer for your drivers under their training programs.

Stay Protected

Keeping pace with change can feel stressful, but nowhere is it more important than with insurance. Conduct an audit of your insurance needs and current coverage, at least once per year. As you grow or change, you must make sure you keep your insurance coverage up-to-date.

With over 80 years of experience, Brooker Insurance Agency can help your fleet stay protected and get home safe. As the experts, we can help you find the right policy and payment plans to suit you and your business’ needs. Contact us today to get a quote and talk with one of our experts.