Take Control of Your Insurance Costs

How to Control 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 truck insurance and risk management solutions. Contact us online or call our office at 1-877-406-5915.