Director of company needing to be the driver???

Ruler

Member
5
I called a certain insurance brokerage company requesting a quote for a truck I want to insure and the nice lady told me that the owner operator would have to be listed as the Director of the corp looking for insurance. This sounds absolutely ludicrous to me. She stated that is what her 3 insurance companies that she deals with request.
 

Henry

Active Member
10
She must be confused maybe? I have never heard of that and that is not the case where i work. My owner does not drive truck, never has.
 

generalkonrad

Member
10
If this is a brand new company opening up then yes . Some insurance companies want the owner to be the driver for up to 3 years. Then the owner can start hiring drivers . It’s all changing . Too many people ran the industry unsafe and law suits are getting too big . I know a guy that used to be in the restaurant business. Then one day he woke up and got 3 trucks and hired some drivers . Got load link and there you go . Did COD on loads and life was great . Then his driver killed someone on the road and they found out he had nothing in safety or any knowledge about trucks . He is out of the game now . I think it’s little unfair as everyone needs to start somewhere and it’s a free country. But running trucks on public roads is very serious. At the end of all of this . He took freight out of the market. Took drivers . Lowered the rates , took a life, raised insurance premiums on us and made the Trucking imagine look bad . So now they make you be the driver and start from there up .
 

Jim L

Well-Known Member
20
Technically there is no specific requirement or law that a Director of the company is the driver but like @generalkonrad said the insurance companies have been burned by new, up and comers, going out buying trucks, hiring drivers, causing accidents and costing the insurance company a lot of money. If you were going to take a risk and insure someone you would want to ensure that the entity you are insuring has experience in the industry. This may be one option to prove to the insurance company that there is experience.

On the other hand, this might just be the polite way for the insurance company to say that they're not interested in the risk proposed.
 

Michael Ludwig

Well-Known Member
20
My bet is on the "On the other hand ... " part. Insurance companies are becoming increasingly risk averse, and that's not necessarily a bad thing. Granted it's going to suck bananas if you're a crappy carrier with a high loss ratio, but if you are successfully managing your risk effectively, even if you have a high, short term loss ratio you should be in good shape. No doubt we will all see increases over the next few years, regardless of how successful we are at managing our risk.
 
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loaders

Site Supporter
30
It has been a number of years since interest rates were high enough for insurance companies to make most of their profits from something other than actually insuring vehicles, property and people. When GICs, term deposits and other low risk investments were paying 5-8%, they could write policies for pretty much anyone and still be profitable regardless of the loss ratio. Different story these last few years where their profit has to come from higher premiums and getting rid of policies that cost them too much. As Michael stated, it is up to the individual carrier to ensure they are watching their losses and doing everything possible to avoid them, including in some cases increasing the deductibles.
 

TRKINSURE

Active Member
10
Guys I can confirm that individual o/o requirement is now a minimum of 3 years for new start up operations. About 5 months ago, Northbridge requirements were 1 year o/o experience.

Old Republic and Intact are getting very tight on new operations. Both from a fleet and non-fleet perspective. Insurers are now stunting growth of fleets, otherwise you could find yourself cancelled midterm or nonrenewed with no options.

I deal with every trucking market. The options are getting fewer and fewer nowadays for new start ups. Even veteran fleets could have difficulties if their safety is up to standards (THEIR STANDARDS).

Like Michael had said elsewhere, you can manage to have a bad loss ratio and maintain reasonable insurance. As long as you’re focusing in on managing that risk aspect of safety and compliance and working with the insurer you’ll be good.

Sorry this rant went off track lol
 

Michael Ludwig

Well-Known Member
20
@TRKINSURE ... I think it's pretty important that people here, especially the smaller, less insurance savvy operators, know everything they can possibly know about insurance NOW, not 2 weeks before renewal.
If you are six months out from renewal and have not had a conversation with your broker, find a new broker, and find one that specializes in for hire, international transportation. Yes, they get paid well. Yes, they are worth every GD penny they make.

As a broker, and a service to this community, I would ask you to lay out a check list of what operators should be looking for in a broker, and in an insurer,

And to all the operators out there, if you are simply out there trying to find the cheapest insurance you can get, save the rest us the time and effort of cleaning up after you, and get out of the business now.

Just my humble 2 cents worth for the day :)
 

lowmiler88

Site Supporter
30
I was talking with our agent yesterday and he said a lot of companies are being forced into facility or join a captive, he said only the best seem to be able to stay in their normal market. He told me of a couple of companies that he doesn't think will get insurance at all and both good size carriers. All things that pertain to insurance have to be a main focus, your CVOR/DOT record, your paperwork/your driver vehicle files and make sure you follow the procedures you tell the insurance companies you have in place. It is not a wink wink nudge nudge business this is the life blood of your business and if you are paying a $1000++ more a month per truck than me guess who has a better chance in the world.
 

loaders

Site Supporter
30
Exactly. Your safety program has to be more than a dusty set of steak knives in your bottom desk drawer. I will never forget that image. Years (many,many)ago, as a safety supervisor for a leasing company, one of our customers tried to prove to me that they were a safety conscious company, low and behold, out came the dusty steak knives. Don’t think that would work too well today!
 

TRKINSURE

Active Member
10
I’ll start a new thread shortly on the “state of the union” for the insurance market currently and into 2019.

There is a polarization happening right now between best in class and everyone else.

Where best in class is all moving to captive, who do you think is subsidizing the worst carriers? Remember, the house (insurer) seldomly loses.

More to come.
 

Michael Ludwig

Well-Known Member
20
^^^ a good broker will point you in the direction of the best captives for your business.
Remember a.k.a. NEVER FORGET ... your insurance broker is your business partner, not a necessary evil.
 

Michael Ludwig

Well-Known Member
20
"Where best in class is all moving to captive, who do you think is subsidizing the worst carriers? Remember, the house (insurer) seldomly loses."

And the result will be that only mediocre and bad carriers will be with insurance companies, and their rates will be astronomical ... most likely directly reflecting their current loss ratios.

And yes, just like Vegas, the house always wins.
 
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