TAKE CONTROL OF YOUR INSURANCE COSTS

It’s no secret that the commercial truck insurance marketplace is volatile. Even for safe companies, rates continue to increase year-over-year. Some trucking companies may gain a competitive advantage by moving into a self-insurance program. Many options are available in the marketplace—from smaller self-insured retention programs to single-parent captive programs for larger fleets.

Any fleet with a good safety record spending more than $250,000 in combined auto and workers’ compensation premiums should at least explore some self-insurance. It may not make sense for all companies, but there is a significant opportunity to reduce costs in the long term for those that meet the parameters.

DOES A CAPTIVE MAKE SENSE FOR YOU?

Use the checklist below to determine if you should explore a group captive option.

  • Minimum $250,000 combined premium for auto liability, physical damage, commercial general liability, and workers compensation
  • Loss ratio of less than 50% for the past five years (Claims Paid ÷ Premium Paid)
  • Healthy financials for the past two years
  • Ability to provide collateral to cover losses within your retention – may be in the form of a Letter of Credit or cash deposit
  • Strong commitment to safety

If you cannot check the boxes above, you may want to explore a self-insured retention program. This allows you to take advantage of potential cost savings of self-insurance without as much of a significant financial and time commitment. A smaller retention program can be a good bridge to a longer-term strategy of “stair-stepping” self-insurance.

If you want to explore a self-insurance program, please Contact Us to set up a brief educational session to explore your options. If it makes sense to move forward, we will conduct a feasibility study to determine the risks/rewards of various self-insurance programs.

For more information, visit our pages on Owner-Operator Trucking Insurance, Trucking Liability Insurance, and Truck Fleet Insurance.

Ready to Get Started?

The knowledgeable professionals at The Daniel & Henry Company will assess your needs and provide cost-effective self insurance and risk management solutions.