TAKE CONTROL OF YOUR INSURANCE COSTS

It’s no secret that the commercial truck insurance marketplace continues to be 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-insured program. There are many options 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 that is spending more than $250,000 in combined auto and workers compensation premium should at least explore some type of self-insurance. It may not make sense for all companies, but for those that meet the parameters, there is a significant opportunity to reduce costs long-term.

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 past five years (Claims Paid ÷ Premium Paid)
  • Healthy financials for 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 all of 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 into 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 Trucking Fleet Insurance.

Ready to Get Started?

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