Preamble: After reading my own reply, it is very apparent that @Trans 's post has struck a very sensitive nerve with me. I won't apologize for my reply, but it certainly is harsh and abrupt.
OH MY LORD !!! My guess is that you, or someone in your organization, just had an "OH SHIT !!!" moment.
This is really a question for
@TRKINSURE to answer in detail from the insurance side, but I'll chip in my 2 cents anyways ...
On the face of it Lynx Underwriters looks like little more than a "LoadLink for Insurance Brokers" which begs the questions "What did you really buy, and who did you really buy it from?".
Northbridge (NB) is a top notch truck insurance company so my guess is their premium evaluation was spot on and you got that premium offer for one of two reasons a) they need you to step up to the plate and become a better carrier, or b) they simply don't want your business, and if that's their reason, you are in more trouble than you think.
In today's insurance market, that much of a discrepancy between two insurance premium offers should have told you that you were missing something very important. My advice would be to get a third party truck insurance specialist to compare the two policies to find out exactly what you are
not insured for.
If FMCSA's push for 2 MIL minimums actually does go through, you're F**ked with a capital "F". NB can write to 10 MIL in house if you meet qualifications, and you would have been okay. Your max now is 2 MIL which means you, or your underwriter (which is not Lynx Underwriters despite their name), have to go to the reinsurance market of which I believe there are only two that are open to reinsuring the trucking market. One of them I know is Lloyds and they are
very, very, very expensive.
"
So let me know the best possible solution to this, please and would you guys have made the same decision as us?"
What follows is my personal opinion ... There is no chance in hell that I would have made that same decision. It appears that a stranger walked up to you and offered you a beautiful orange or a rotten apple, and without any research at all, you chose the rotten apple, all in the name of saving money.
Nobody, and I mean nobody, saves money on insurance ...
ever ... what they do do is earn lower premiums. It's something you have to work at. It doesn't just happen.
You claim to need to cut your running costs. Has it occurred to anyone in your organization that you are simply working too cheap? Turning wheels just to turn wheels is not a ticket to success. Trucking is not an easy game.
Solutions: You have none. At least nothing immediate. You've already bound the policy so, barring some sort of miracle, it's likely going to take you 3 to 5 years to work your way out of this.
First, as I mentioned above, get a third party trucking insurance specialist to review what you gave up and what you actually have. Maybe reach out to
@TRKINSURE , and I'm sure you'll need to pay him for his time and advice.
Second, get a third party safety person to come in and do moch CVOR and USDOT audits to pinpoint where you are deficient. Correct those deficiencies to earn better insurance premium opportunities.
Third, find someone that knows how to analyze your business model and point out how and why either your expenses are too high, or your revenue is too low. Typically an accountant (CMA, CPA, CGA) with trucking experience can do that for you. Also, either Ray Haight or Mike McCarron can do that for you.
Fourth, all three of the above are going to cost you money. If you don't have it, or can't find it, you need to prepare an exit strategy.
Fifth, if you're still reading, go to night school. Take management and administration classes. Learn how to read a financial statement. Learn how to do research.
