Question
I have 300,000 bob truck experience and just got my "class A". I would like to get a rig and ins., but the usual...you need 2 yrs exp is the line I get. So how would I get started? I will also be brokering my loads because of the contacts I have. So I will also be using my own trailer. Can it be that this is impossible? Can a bond be an alternative? I read a reply before which asked (paraphrased)"can you afford $25,000 per each accident?" my question is what nut would insure someone who keeps racking up accidents????
anyway....please help. !!!!
Answer
BB,
As I understand your post, you have no Class A experience, you want to be an owner-operator and a broker.
What you are hearing about the 2 years experience is true. Most companies are asking for 2 years, some for 3.
I know it may seem frustrating, but truck insurance is in a very "hard market" at this time and in my opinion, this is not the end of it.
Let me ask you a question. If you had a life threatening brain tumor that required surgery, would you seek out the best nuerosurgeon available or would you settle for the medical school graduate and be his first patient? Both are licensed. So who would you trust your life to?
That's sort of what is happening in trucking. EXPERIENCE IS EVERYTHING! With experience comes wisdom. A 20 year veteran trucker is less likely to take unnecessary changes, whereas a new driver may not have the experience to make an informed decision.
Also, as 1st time owner-operator with motor carrier or brokerage authority, an individual may lack the management experience needed to run an effective, safe trucking operation.
If you are serious about being an owner-operator, I suggest you start with baby-steps. Get the Class A, drive for a company for 2 or more years to get the experience you need, then if you still want to venture out on your own, go for it. In the meantime, you will have gained valuable information about the industry to help you make the right decisions when you have your own business.
I realize this may not be the answer you wanted, but at this time our office does not have a market that will look at a driver or owner-operator without experience and frankly, I don't know of any insurance company that is.
I will suggest that you post your inquiries about getting started to the Roundtable so our veteran community members can share their knowledge with you. They are very knowledgeable and give you some specific directions to explore.
Connie
Answer
I appreciate your advice, even if it's not what I want to hear. Actually I have most things going for me. I am a 20 + year successful businessman with very solid business experience and savvy in my corner. I am known for doing things others only think about. I realize there are things only experience can teach, that goes without saying. But I need to multiply my time into real money and really can't afford to work for others for a couple years. If I can't ferret this out, I will be forced not to do it. I would probably end up growing into a large firm in years to come, as has been my track record in other industries.
So what you are saying is there is no insurance company who would cover me, no matter how low their risk would get, ie. extremely high deductable, or is there a self-insure or bond issue that is possible?
Thanks so much for your time Connie. It is sure helpful to talk to someone "in the know"
BB
Answer
BB
Answer
BB,
I'm not saying it's impossible. I'm saying that of all the truck insurance companies I work with (about a dozen), I don't know of one at this time that would be eager to write a new venture with an inexperienced driver.
As for a bond or self-insurance, that would require significant financial assets, if it could be done. With the minimum FHWA liability requirement being $750,000, we would be talking about millions in assets for a bond and that's IF a bonding company were willing to do this. On the other hand, self-insurance would require significant assets and meeting the stringent requirements of FHWA to qualify. And I'm not sure if they would do that for a new venture with no history.
If owning a truck, but not driving would be enough of a challenge for you, you might want to consider putting an experienced driver in the vehicle and grow the business that way. But I would caution you to do a business plan and allow for all the items associated with employess; wages, Workers Compensation, health insurance, etc.
Hope this helps.