Insurance Claims in the Trucking Industry: Common Pitfalls and How to Avoid Them
Trucking is a profitable industry that is in high demand, but it’s not without its share of risk. With around 2.9 million semi-trucks on the roads in the US (1), hazards are inherent. And with these dangers come liabilities that threaten the safety of drivers, fleet, and customer cargo as well as the prosperity and reputation of your company.
With the stakes so high, as well as the necessity to meet regulatory requirements, trucking companies must invest in comprehensive insurance to help protect themselves. And while the liabilities carriers face are many and varied, it can be beneficial to know some of the most common causes for trucking insurance claims in order to help avoid them.
Common Causes of Trucking Insurance Claims
Driver Error
Mistakes made by drivers can often lead to insurance claims. Driver errors could include driving violations like speeding, distracted driving, falling asleep while driving, reckless driving, or swinging too wide when taking a turn.
Equipment malfunction
A long-haul truck can face several equipment or mechanical failures that can lead to an accident and an eventual insurance claim. These can include braking system malfunctions, an overheated motor, a flat tire, timing belt problems, fluid leaks, and more.
Environmental hazards
When driving, operators can face unfavorable road conditions due to construction, debris, and bad weather. Approximately 21% of insurance claims are due to poor weather. (2)
Lost and damaged property
Insurance claims may be the result of cargo being damaged or lost before it reaches its destination.
Injury
Any of these listed claims can also involve the injury of one of your drivers, or a motorist they share the roadways with, which would increase the severity of the original claim.
Avoiding Common Causes of Trucking Insurance Claims
Reducing the number of insurance claims your company makes can save you time and money. While many are unavoidable, there are some things you can do that can reduce the burden on your insurance policy, including:
- Don’t wait to file a claim. While it can be beneficial to reduce the need to make a claim on your policy, you shouldn’t avoid making one if you need to. Too often, companies try to go it alone when dealing with an accident or related challenges, and the matter becomes too complex or the cost too high, making it necessary for them to file a claim in the end. Delayed filing could jeopardize your position in resolving the matter or could cause you to lose your coverage altogether.
- Offer educational opportunities to your employees. Since claims so often involve human error, it is critical to provide ongoing training for our employees, especially your drivers, on safety regulations, the specifics of your insurance policy, and how to adequately file a claim.
- Maintain your fleet. Proper vehicle maintenance is critical to avoiding insurance claims. Brake-related problems alone account for 29% of semi-truck accidents, according to the Federal Motor Carrier Safety Administration (FMCSA). (2) Without the necessary maintenance, long-haul trucks can be a serious hazard to their drivers, cargo, the motorists they share the road with, and the companies they represent.
Each year, there are more than 168,000 accidents involving trucks, 32% of which result in injury and 3% in fatality. (3) To combat that statistic, and to ensure your company and everyone who works there is protected, it is essential to have an experienced insurance agency on your side. At SWZ, we have a reputation for putting together some of the finest submissions in the industry, which give the underwriter a detailed picture of your business, and which highlight all the things your company is doing right. We also offer expertise and guidance on corrective steps to be taken to rectify any issues. To help, we offer a free SCORE report, which provides an overview of a carrier’s safety performance, measures its compliance with safety regulations, and identifies areas of high risk. To learn more about how we can help you safeguard your business, please contact us today.
(1) https://www.truckinfo.net/research/trucking-statistics
(2) https://ops.fhwa.dot.gov/weather/q1_roadimpact.htm
(3) https://www.truckinfo.net/research/truck-accident-statistics
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