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FMCSA Withdraws Increase of Financial Minimum Proposal

Monday, June 26, 2017
In 2013, we began sharing information about the House Bill to increase bodily injury/property damage insurance for motor carriers from $750,000 to $4.4 Million. We promised to keep our clients and friends informed.

On May 19th of 2014, our own John Burtch made a presentation to Congress regarding the proposed increase for financial minimums for motor carriers. He highlighted the history of the financial requirements, and how there was no data analysis to develop the current requirement. The limits were picked in order to force insurance carriers providing the limits to increase their scrutiny of the safety efforts of their motor carrier policy holders.

“If no cost analysis was utilized when setting the current rates, then how can an index factor be applied to a number that was not data based?” -John Burtch

Earlier this month, FMCSA officially withdrew the proposal to increase the financial responsibility for motor carriers. They provided the following explanation:

“FMCS has determined that it has insufficient data or information to support moving forward with the rulemaking proposal at this time.”

As result, we are happy to wrap up our four-year coverage of this topic.

If you have any questions, please contact us at any time.

FMCSA Asking for Comments on Insurance Proposal

Thursday, December 11, 2014
The FMCSA is looking for your comments on a plan to increase the insurance minimums for carriers and establish insurance requirements for brokers and freight forwarders.

The notice is scheduled for publication in the Federal Register this week. The agency said it will publish an insurance proposal for private carriers separately.

The agency is acting on instructions from Congress to update insurance requirements that have been in place for almost 30 years.

In 2012, Congress considered telling the agency to raise the general freight minimum to $1 million, but ultimately told the agency to prepare an analysis that could become the basis for a new standard.

The agency found that the insurance minimums need to be reevaluated due to increasing medical costs and changing the statistical life estimates. It is considering a range of numbers, but one would be to peg the minimums to the Consumer Price Index.

For questions, please contact us at Dawson Transportation Services

Property Brokerage Insurance Seminar

Tuesday, September 16, 2014
Dawson Transportation Services is excited to announce that we will be hosting our second Property Brokerage Insurance Seminar on Thursday, October 16th. Seating is limited. Please RSVP by October 6th at the link below.

We have arranged multiple speakers including, but not limited to Jonathan Stringer of Great West Casualty and with Marc Blubaugh of Benesch Law. Marc is currently President of the Transportation Lawyers Association and has litigated a wide variety of transportation and logistics-related cases in state and federal courts throughout the United States as well as before administrative bodies.

Please click here to learn more about this FREE seminar or to register online.

We hope to see you there!


Lower E-Logging Prices - Time to Hop On?

Wednesday, September 04, 2013

In the September 2nd edition of Transport Topics, an article summarized how electronic logging device makers believe the federal government’s plan to require most truckers to use the devices will cost the industry less than anticipated. Previously the cost of these ELD’s were around $2,000.  Now you can get them for as low as $300.

We have spoken with some of our clients who have already installed ELD’s into their equipment, and they couldn’t be happier about their decision. It has increased productivity, accuracy in their logs, and satisfaction among employees. Not to mention, it has also helped improve their current HOS score.

Now let’s put an insurance spin on this…

When it comes to renewal time and an insurance company is either looking at renewing a policy or writing a new policy, what is one of the first steps an underwriter will take? You got it - they are going to get on the SAFER website and take a look at the policyholder's HOS score. This information is one of major factors that an underwriter takes into consideration when determining the appropriate cost of an insurance program.

Also, let’s not forget that while other carrier’s scores in your same peer group are improving, it has an adverse effect on the other members of the same group.

Please feel free to contact us with any questions or concerns with how ELD’s are impacting your current peer groups' scores in the HOS arena.

House Bill to Raise Minimum Limits

Wednesday, August 14, 2013
Below is another article written by Tony Palmer of AldenLaw. The article details a new bill introduced in Congress that would raise bodily injury/property damage insurance for motor carriers from $750K to $4.4 million.

Once again, we would like to thank AldenLaw for providing us with this information.

Workers' Compensation Issues Facing Truckers in 2013

Friday, February 01, 2013

As 2013 begins to unfold, it is becoming apparent that Workers’ Compensation coverage will be at the forefront of issues facing trucking companies.

Workers’ Compensation underwriting results in the past two years have been very unprofitable for insurance companies. Several insurance companies with large Workers’ Compensation premium volumes are beginning to reduce their premium writings. Coupled with the poor overall underwriting results, this will bring more pressure on pricing. Insurance carriers are also stressing the independent contractor issue and charging premiums for owner operators not carrying their own WC coverage.

What can trucking companies do?

  1. Understand your claims history and closely monitor your open claims. Work closely with your insurance company and compensation consultant on return to work programs to mitigate claims costs.

  2. Understand the nature of your claims history and invest in safety materials and training to reduce the amount of claims going forward.

  3. Review the WC status of any owner operator leased to you. Investigate the feasibility of occ/acc coverage as an alternative to WC for owner operators.

  4. For Ohio based companies, understand the nature of SB 334 and the ability of motor carriers to purchase coverage for operations outside the state of Ohio.

Please contact us regarding any of the above suggestions. We have programs to assist you in managing your Workers’ Compensation costs.

Dawson Companies
- An AssuredPartners Agency
3900 Kinross Lakes Parkway #300 •
Richfield, Ohio 44286 •
T: (440) 333-9000 •
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