Question
Just thought I'd share this...some of the major truck insurance companies are either pulling out of the dump truck market or are beginning to price themselves out of the market.
Today, I was advised by one of my companies that this class of business is no longer one of their target markets. For the accounts they currently write, clients can expect to be non-renewed.
Those same accounts can expect to see an increase up to 50% merely by changing companies.
I was contacted by the Wisconsin Insurance Commissioner's Office looking for some help in writing trucking clients who had filed complaints with the commissioners office because of the recent withdrawal of these carriers.
As I explained to him, there are companies writing this class of business, but not at those premiums.
If you are in the dumping business, keep a close eye on your insurance. You may want to contact your agent to see what your insurance company's position is on this class of business.
If you company is headed "south", ask your agent if he has alternative markets and what kind of pricing can you expect. Try to find out early so you can plan accordingly.
Make sure your agent knows all the details of your operation. If you never operate beyond a 300 miles radius, be sure the policy is not written on 500 miles. It could save you a some money.
Double check the value of your equipment. Don't over insure and don't underinsure.
Keep your driving record as clean as possible.
And most importantly, pay your premiums on time. Now is not the time to have a policy lapse for nonpayment, as the insurance company may decide they do not want to reinstate.
Answer
Connie: Could you elaborate on the reasons these insurance companies are getting out of covering dump operators or raising premiums so high so quickly?
Answer
Very simple....higher risk. End dumps are prone to falling over due to the terrain and when they do, damage is usually extensive.
Also, they often are running in construction areas where conjestion can create obstacles that impairs manueverability. Thus, a collision.
The claims from this class of business have caused insurance companies to take a second look and decide if this is the class of business they want to continue to insure. Some have said no and others yes, but at a higher premium to cover the higher exposure.
Answer
Originally posted by Connie the Insurance Lady:
snipped...End dumps are prone to falling over due to the terrain and when they do, damage is usually extensive...snipped
That's what I thought. Do you know whether the insurance companies recognize the differing tip-over risks of end dumps compared to other types of dump bodies which are not raised, such as belly dumps and live-floor horizontal discharge trailers? Or, are all these lumped together as "dump trucks" by the insurance companies? Thanks.
Bryan
Answer
There are some insurance companies that will differentiate between end-dump and belly-dump. The trick is finding one that does.
When you are seeking quotations for your insurance, be sure to use an agent well versed in trucking and advise the agent of the specific equipment you have.
Ask them to verify if the insurance company "rates" belly dumps the same as end-dumps.
And go from there...
Good luck.