This submit is a part of a collection sponsored by IAT Insurance coverage Group.
After the unprecedented growth that surged by means of the trucking trade following the COVID-19 pandemic, trucking corporations at the moment are grappling with decrease supply volumes and extra capability as shopper demand declines.
Within the second quarter of 2023, internet earnings at trucking companies throughout the nation fell between 22% and 69%[1]. Moreover, as many as 67% of logistics professionals don’t anticipate any freight quantity enhance within the first half of 2024.[2] Shippers presently 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 increased curiosity and coverage charges and hovering gas costs, but in addition inflation and rising operational prices whereas managing their very own employment advantages.
On this market, the fragile stability between managing prices and defending your small business is important. Chopping prices shouldn’t equate to reducing corners relating to insurance coverage as lack of protection in at the moment’s surroundings might be further detrimental to you and your small business. As a substitute, 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 greatest errors you may make is opting out of insurance coverage protection. Whereas it could seem to be a cost-saving measure within the brief time period, the dangers related to such a choice might be extra pricey. Going with out insurance coverage jeopardizes your private financial savings and belongings ought to an accident happen.
Consider insurance coverage protection as a approach to switch threat away from your small business 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 below are some key coverages to contemplate:
- Occupational accident protection contains medical, incapacity, dying and different damage coverages akin 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 fulfill 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. It is very important choose a restrict of insurance coverage that displays the worth of your automobile. Choosing a decrease restrict to save lots of 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 numerous types, from primary protection that repairs harm to your automobile to extra complete enhancements that may defend you from various kinds of losses akin to downtime or mechanical breakdown. Contact your insurance coverage supplier to debate insurance coverage limits and protection that finest meet your wants.
Different traces of protection your small business might need 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, but it surely additionally presents a possibility for savvy fleet house owners 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, completely by means of membership with the Nationwide Affiliation of Impartial Truckers (NAIT). NAIT members achieve entry to a variety of business and life insurance coverage in addition to healthcare coverages and unique offers on tires, lodges and gas.
ASK A LOSS CONTROL REPRESENTATIVE
Have a query on find out how to mitigate your threat? E-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 companies 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.
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