Case Study

BoMont Group Resolves Insurance Dilemma, Delivers Significant Savings for Regional Trucking Company

The Challenge

A regional trucking company faced exorbitant open claims reserves during their auto liability renewal. These inflated reserves caused their insurance costs to skyrocket and jeopardized their business operations.

The Solution

After intensive research, BoMont discovered the reserves were exceeding reasonable amounts by 100%. BoMont's claims advocates presented what they had discovered and the carrier agreed to revise the claim reserves, reducing them from $500,000 to under $200,000.

Succesful Insurance Renewal

BoMont Group facilitated a successful renewal process, securing a modest price increase from the same carrier. This achievement was anchored in the substantially lower loss ratio attained through BoMont's efforts. The trucking company successfully renewed its insurance without incurring excessive financial strain.

Understanding Trucking Industry Insurance Requirements

Combatting High Insurance Costs with Safety-Focused Culture

The rising cost of insurance is becoming more and more problematic in the trucking industry — almost to the point of forcing some carriers to the brink of closure. And while there seems to be a long list of reasons why premium costs continue to rise — more expensive vehicles, a shortage of skilled drivers, and skyrocketing litigation costs just to name a few — there seem to be fewer and fewer strategies for carriers to combat the ever-increasing premium costs.

There is one strategy that has been solid from the industry’s beginning and remains effective even in today’s changing commercial insurance environment: creating and maintaining a safety-focused culture in every aspect of your business.

Creating a Safety-Focused Culture

Safety has always been a top priority for trucking companies, but creating a culture that is keenly focused on safety in every aspect of the business — hiring, firing, drug testing, training, vehicle maintenance, and more — can help you get lower premiums to start with and also fare better when claims are filed.

However, the key is to create and implement a very comprehensive, detailed safety program — some like to refer to it as a culture of prevention — and maintain it meticulously. Having a plan isn’t enough. A commitment to safety must permeate all aspects of your operation.

Data Is the Roadmap

According to the FMCSA’s Report to Congress on the Large Truck Crash Causation Study, the majority of commercial vehicle claims are caused by vehicle breakdown, driver error, or environmental factors. Brake issues were found to be the number one cause at 29 percent, while environmental factors or roadway problems accounted for 20 percent and weather was cited in approximately 14 percent of claims.

This data offers a perfect starting point for creating your company’s safety- and prevention-focused culture. Because, as they always say, the best defense is a good offense. And when it comes to combatting rising insurance costs, becoming a safety-first, well-run company is the best offense a carrier can put on the field.

Customer FAQs

Answers to commonly asked questions about trucking industry insurance.

Q: What kind of insurance coverage do trucking companies need?

A: Choosing the right insurance coverage is crucial for protecting your business and there are several options to choose from. Many small trucking companies opt for Guaranteed Cost insurance programs, shifting most of the risk to the insurance company. But as your company grows, evaluating the potential benefits of sharing risk is essential. However, the premiums (the money they have to pay for the insurance) are usually higher with this option. With a deductible, the insurance company pays the claim, and you reimburse them for the deductible amount. Larger deductibles may require collateral like cash or a letter of credit. Self-insured

Q: What different factors affect the cost of commercial trucking insurance?

A: There’s no one-size-fits-all when it comes to commercial trucking insurance, as every company is different. However, some of the factors that will impact how much your insurance premiums include the age and condition of your trucks, the age of the drivers, the driving record of drivers, type of cargo, the distance your trucks travel, and state and federal laws.

Q: How can I best manage risk for my trucking company?

A: To ensure you have a comprehensive risk management plan in place for your business, it’s wise to develop a relationship with a trusted insurance broker who can advise you not only on mandated insurance coverage needs, such as general liability and cargo insurance. Your broker will also look at the ‘big picture’ of your business and make recommendations for other risk management efforts such as driver training and safety protocols, vehicle maintenance best practices, and strategies for reducing accidents and insurance claims.

Q: What are some tips for filing an insurance claim?

A: First and foremost, do it quickly. Filing a claim quickly can facilitate faster claim resolution, lower claim costs, reduce the potential for litigation, protect evidence, and comply with your carrier’s request for quick filing. Make sure you gather all important information and supply it to your carrier and, once the claim is filed, follow up regularly. Also, it’s smart to educate employees about the importance of quickly filing claims and the claims filing process.

Trucking Trends for 2023 and Beyond

What’s trending in trucking for this year and beyond according to DriveBigTrucks.com article December 2022

Our super-hot industry shows no signs of slowing down. In fact, job openings for truck drivers will only continue to climb.

Trucks will continue to become more automated and the technology more robust and intuitive. This includes better tracking, automated loading, more fuel-efficient vehicles, and more.

In both packaging, more efficient and even electric vehicles and more focus on maximizing efficiency in every aspect of trucking operations.

E-commerce really took off during the COVID-19 pandemic and it continues to grow. And as e-commerce grows, so does trucking.

Summertime BBQ Recipe

Simple, Spicy Ribs

Summer is the perfect time to fire up the grill. Here's a spicy, saucy recipe for delicious ribs that starts in the oven and ends as grilled-up perfection.

1 cup dark brown sugar
3 tablespoons kosher salt
3/4 tablespoon dry mustard powder
3/4 tablespoon garlic powder
3/4 tablespoon freshly ground black pepper
3/4 tablespoon cayenne pepper
3/4 tablespoon smoked paprika
2 racks baby back pork ribs about 2 1⁄2
pounds each, membrane removed from the underside of each rack

In a bowl, combine brown sugar, salt, mustard, garlic powder, black pepper, cayenne, and paprika. On two baking sheets, sprinkle the spice mix on the ribs and then rub it into the meat. Cover with foil and refrigerate for at least four hours.

Preheat the oven to 250 degrees F. Keep the ribs covered in foil and roast for three hours, until the meat is super tender. Remove from oven.

Preheat the BBQ. Brush each rack of ribs liberally with barbecue sauce and broil or grill for about 10 minutes, turning and brushing occasionally with the sauce, until well-browned and crispy in spots. Transfer the ribs to a cutting board and cool for five minutes. Enjoy!

Bubbler Buzz

Trending nuggets from around the globe to level up at the water cooler.

Austrailian sailor Tim Shaddock and his dog, Bella, were found and rescued after having spent two months lost in the Pacific Ocean!
The world's whitest paint could help cool the rapidly warming planet by making surfaces up to 8 degrees Fahrenheit cooler than the air temperature during the day, and up to 19 degrees cooler at night!
Simon & Garfunkel were onto something back in '64. A team of philosophers and psychologist at Johns Hopkins University determined that our brains process silence the same way we process sound. Nothing is also something you can hear.

The BoMont Group Scoop - July 2023