From the Front Lines: Trucking

How did you get started at your agency?

Upon graduating with an undergraduate degree from Troy University in 2006, I became a marketer at a competing independent agency that specialized in trucking. This experience, combined with my MBA from Troy University in 2007, prompted Palomar to reach out to me to head its transportation marketing division in 2013.

Why trucking insurance?

Trucking insurance has been a constant in my insurance career—I couldn’t imagine giving it up to focus on another niche. This field is ever-evolving, which keeps things interesting.

Biggest trucking challenges?

New ventures are eager to start their own trucking businesses and obtain their motor carrier authority, but they are shocked at the cost of insurance premiums. Unfortunately, the inflated premiums for those who are new to the trucking industry aren’t expected to decrease any time in the near future, and the markets available to write such risks are few.

Moreover, finding qualified drivers is a struggle for almost all motor carriers, so they are tempted to employ drivers who fail to meet not only the trucking company’s hiring guidelines but also the driver criteria of the insurance carrier.

Biggest trucking changes?

Insurance prices for the trucking industry have steadily climbed over the past few years. With jury verdicts skyrocketing against motor carriers and several primary liability markets pulling out of the marketplace, insurance companies have been forced to increase rates.

Future of trucking?

Despite most motor carriers purchasing at least $1-million limits in primary auto liability, the federal government only requires $750,000 limits in most cases. Due to the expense of catastrophic crashes, I expect this limit to increase at some point in the future. Also, with rising medical costs, the current minimum limits may not be adequate.

Trucking advice for a fellow agent?

With the rise of insurance premiums, inexperienced insurance agencies are attempting to find their place within this niche. Unfortunately, non-specialized agents often lack the experience and knowledge motor carriers require. If you are an agent looking to enter the truck insurance marketplace, be sure to educate yourself on the unique needs of motor carriers and the specific coverages they require.

Favorite trucking success story?

Whenever I’m able to provide a competitive quote with broad coverage for a distressed risk, I consider it a job well done. These types of accounts can be notoriously difficult to place because of their high loss frequency and severity, poor Department of Transportation inspection results, or some other component that negatively impacts the underwriting process. When I am able to provide them with comprehensive coverage and affordable rates, I am able to prove my worth. A transportation risk specialist provides truckers with a level of confidence that can’t be obtained from agents who are new to the field.

Will Jones is the IA assistant editor.