A Poll: Should commercial carriers be allowed access to Facility Insurance?

[Michael Ludwig]

One more thought ... In light of the Montgomery decision in the U.S., are you, as a load broker, content with taking on a carrier that is Facility Insured, knowing full well that the voluntary insurance market has deemed that carrier to be too risky to insure?

BTW ... there has to be more than 18 people that have an opinion on this subject. You don't need to publish the opinion ... just vote your conscience.

 

[JACKBURTON]

as a load broker, content with taking on a carrier that is Facility Insured, knowing full well that the voluntary insurance market has deemed that carrier to be too risky to insure?

If they offer a sweet rate? loollll. Some brokers will never learn.

 

[Nawk]

One more thought ... In light of the Montgomery decision in the U.S., are you, as a load broker, content with taking on a carrier that is Facility Insured, knowing full well that the voluntary insurance market has deemed that carrier to be too risky to insure?

As a guy that works for a company that is both a sizable carrier and a broker...

The Montgomery case has only changed one part of our carrier vetting... we're more careful about documenting things and how often carriers are reviewed. We've always been cautious and properly vetted who we give freight to.

With respect to Facility insurance... well, that's (in most cases) the end of the road isn't it?

If an insurer deems a company too risky to insure... surely, there's a trail of documented violations that lead to that decision. As a freight broker... if you look at any data at all when onboarding or reviewing a carrier... the signals are there.

OOS violations tell the story of who a carrier is, the type of drivers they hire, how they maintain their equipment and how they operate.

 

[loaders]

Without a doubt, risk management has taken on an even greater role in the day to day activities of most load brokers. In the “olden days” one’s biggest concern was pretty much confined to whether the customer was going to pay the freight bill. After the de-regulation of the trucking industry, the marketplace exploded with hundreds of new entrants, and the concern then was trying to separate the professional operators from the fly by nights.
Today, the risks to your business are greater than ever. Fraudulent carriers. Carriers operating on shoestring budgets and ignoring maintenance, hours of service, and other rules and regulations. Back soliciting your clients, double/triple brokering your freight. The days of simply ensuring your suppliers had an insurance policy and proper operating authority are long past. A carrier with auto insurance issued by the Facility Association should be regarded as a “red flag” when vetting a new supplier, along with out of province phone lines and addresses, operating from a residential area, a lack of credible credit references, poor or out of service Safer scores, bad CVOR scores….the list has almost become endless!