This submit is a part of a collection sponsored by IAT Insurance coverage Group.
After the unprecedented increase that surged by the trucking trade following the COVID-19 pandemic, trucking corporations at the moment are grappling with decrease supply volumes and extra capability as client demand declines.
Within the second quarter of 2023, internet earnings 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 are usually not solely dealing with larger curiosity and coverage charges and hovering gasoline costs, but in addition inflation and rising operational prices whereas managing their very own employment advantages.
On this market, the fragile steadiness between managing prices and defending your enterprise is essential. Slicing prices shouldn’t equate to slicing corners on the subject of insurance coverage as lack of protection in at present’s setting could possibly be additional detrimental to you and your enterprise. As an alternative, 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.
Switch your danger to guard your enterprise
One of many greatest errors you can also make is opting out of insurance coverage protection. Whereas it might seem to be a cost-saving measure within the brief time period, the dangers related to such a choice might be extra expensive. Going with out insurance coverage jeopardizes your private financial savings and property ought to an accident happen.
Consider insurance coverage protection as a technique to switch danger away from your enterprise throughout this unpredictable time. The trucking trade gives numerous 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 contains medical, incapacity, loss of life and different damage coverages equivalent to surgical procedure and rehabilitation bills for accidents that happen on the job. The incapacity element might be particularly essential for drivers unable to work on account of damage, permitting them to satisfy their monetary obligations throughout a interval of incapacity.
- Bodily harm protection – there are two key concerns when deciding on applicable bodily harm protection – 1) the insurance coverage restrict of protection, and a pair of) the protection chosen. You will need to choose a restrict of insurance coverage that displays the worth of your automobile. Deciding on a decrease restrict to save lots of price, exposes you to an uncovered declare ought to your automobile be considerably broken or totaled in an accident. Bodily harm protection is available in numerous varieties, from primary protection that repairs harm to your automobile to extra complete enhancements that may defend you from several types of losses equivalent 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 enterprise might wish to discover embody informal labor employees’ 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, however it additionally presents a chance for savvy fleet homeowners and drivers to implement cost-saving measures, fortify their operations and improve their insurance coverage to higher defend their enterprise.
IAT gives protection choices tailor-made to the trucking trade, like these listed above, solely by membership with the National Association of Independent Truckers (NAIT). NAIT members acquire entry to a spread of economic and life insurance coverage in addition to healthcare coverages and unique offers on tires, resorts and gasoline.
ASK A LOSS CONTROL REPRESENTATIVE
Have a query on the way to mitigate your danger? 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 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.
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