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Safety: Key to Lowering Insurance Costs for Trucking Companies

By April 18, 2024April 23rd, 2024Business Insurance, Trucking Insurance

The Costly Business of Trucking

Running a trucking business is no small feat. With estimated annual operating costs of around $210,000 per truck fleet owners face numerous expenses that seem beyond their control. Fuel prices, equipment costs, and driver pay are just a few examples. However, there’s one area where carriers can exert influence and potentially save significant money: insurance.

The Role of Safety in Insurance Costs

Insurance, at its core, is about risk transfer. The less risk a trucking company poses, the lower its insurance costs. Insurers evaluate carrier risk through various factors, including Safety Measurement System (SMS) scores, accident history, and adherence to policies and procedures.

Establishing a Strong Safety and Compliance Program

To control insurance costs, trucking companies should focus on establishing a robust safety and compliance program. Here’s how it can make a difference:

  1. Driver Training and Safety Protocols: Invest in safety training for your drivers. Implement strict safety protocols and ensure that your team follows them consistently. Insurance companies typically offer lower rates to carriers with a proven track record of safe driving.
  2. Modern Safety Technologies: Take advantage of modern safety technologies. Features like lane departure warnings, collision avoidance systems, and dash cameras can help mitigate the risk of accidents, leading to potential insurance savings.
  3. Consultancy Programs: Consider working with insurance brokers that offer consultancy programs. For example, Reagan Companies provides clients with guidance on implementing safety programs that reduce long-term risk. While accidents can still happen, minimizing their frequency and severity through training, awareness, and policies is crucial.

While some costs in the trucking industry remain beyond carriers’ control, insurance is an area where proactive measures can lead to substantial savings. Prioritizing safety and compliance not only protects your business but also helps cut insurance costs in the long run. For more information on our commitment to supporting clients in the pursuit of safety, contact us today!

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