Trucking Insurance Renewal: Key Considerations for 2025

As trucking companies are keenly aware, the trucking insurance industry has been experiencing a hard market for over a decade, characterized by rising premiums, reduced capacity, and stricter underwriting standards. However, 2025 brings some good news and opportunities—for some.

What’s Happening With Rates Right Now?

After years of a hard market that featured many carriers readjusting their underwriting strategies, we are beginning to see the positive impact of the Compliance, Safety, Accountability (CSA) program and the Electronic Logging Device (ELD) mandate. These systems provide unprecedented access to real-time and historical data, enabling carriers to differentiate between safety-conscious trucking companies and those with higher risk profiles.

As a result, the spectrum of rates in the trucking insurance market will likely continue to broaden. As the market becomes more data-driven, underwriters are analyzing risk profiles more thoroughly than ever, making the gap between optimal and suboptimal rates increasingly pronounced.

In other words, insurance carriers have more data than ever before to reward safety-conscious companies and penalize higher-risk operations.

🟢 Green Lights: What Underwriters Want to See

    • Strong CSA Scores: Clean, consistent compliance records demonstrate your commitment to safety and regulatory standards. Companies with excellent CSA scores stand out to underwriters and are often rewarded with lower premiums.
    • Cameras & Telematics: Companies leveraging technology like dashcams and telematics grab an underwriter’s attention immediately. The benefits of cameras, especially in preventing and defending claims, cannot be overstated. Telematics systems that monitor driver behavior further enhance your safety profile.
    • Structured Safety Programs: Underwriters value trucking companies with clear, documented safety policies, regular training sessions, and consistent accountability for drivers. A no-exceptions enforcement policy shows a culture of safety and responsibility, which translates to reduced risk. Additionally, these programs are invaluable in the event you find yourself in litigation.

 

Exploring Program Structures for Your Operations

Customizing your insurance program structure is a strategic way to achieve cost efficiencies and ensure alignment with your business model. Here are some common program structures to consider:

    • Mileage-Based Programs: Ideal for operations with predictable routes and mileage. Premiums are calculated based on total miles driven, making this a great option for companies focused on reducing unnecessary travel.

    • Sales-Based Programs: Suitable for businesses where revenues fluctuate with hauling volumes. Premiums adjust based on annual sales figures, offering flexibility during slower periods.

    • Composite Rating Structures: This approach pools exposure across multiple factors such as mileage, number of trucks, and drivers. It simplifies the premium calculation process, especially for fleets with varying operational metrics.

    • Self-Insured Retention (SIR): A self-insured retention structure allows companies to assume a portion of their risk, offering potential cost savings and greater control over claims management. This is ideal for larger, financially stable fleets with strong risk management practices.

    • Captive Insurance Programs: Captives provide a customized risk-financing solution, enabling companies to pool their risks and gain more control over premiums and claims. They are a great fit for companies looking to stabilize costs, improve cash flow, and potentially share in underwriting profits. Captives also foster collaboration among like-minded companies to reduce overall risk and improve safety.

 

Final Thoughts

2025 presents an opportunity for trucking companies to improve their current insurance program by leveraging favorable market trends. This also creates an opportunity to review whether there are program structures that better align with your operations. By focusing on what underwriters want to see and exploring tailored program structures, you can secure optimized rates.

If you’re interested in my help, just drop me a line. 

Ryan Hanigan

🚛 Helping Trucking Companies Optimize Their Insurance & Safety Programs

 

📧 Email: ryanhanigan@jjdoorhy.com
📞 Phone: 708-955-5989

🌐Company Website: www.jjdoorhy.com

State of Trucking Insurance Market

I believe the spectrum of rates in the trucking insurance market will continue to widen, particularly for large commercial fleets. As the market becomes more data-driven, underwriters are analyzing risk profiles more thoroughly than ever, making the gap between optimal and suboptimal rates increasingly pronounced.

Companies that meet underwriting criteria will benefit from increased competition among carriers, leading to better rates and more favorable terms.

On the flip side, the market for companies that fail to meet these standards will continue to shrink, making it harder to avoid rate hikes and unfavorable conditions.

Here are 3 “red lights” that might raise concerns among undewriters—and 3 “green lights” that can help you stand out as a safe and reliable operation:

 🚦Red Lights
1️⃣ Poor CSA Scores: A history of violations or compliance issues signals heightened risk to underwriters.

2️⃣ Lax Disciplinary Programs: Without consistent consequences for unsafe driving, underwriters will take notice. For example, if a driver violates the safety handbook but isn’t held accountable or continues to operate as a driver, it raises significant red flags.

3️⃣ Informal Safety Practices: A lack of structured safety policies signed and acknowledged by drivers can be a major liability. During litigation, one of the first things requested is evidence of a formal safety program. If you don’t have one in place, it could spell trouble.

🟢 Green Lights: What Underwriters Want to See

1️⃣ Strong CSA Scores: Clean, consistent compliance records demonstrate your commitment to safety and regulatory standards.

2️⃣ Cameras & Telematics: Companies leveraging technology like dashcams and telematics grab an underwriter’s attention immediately. The benefits of cameras, especially in preventing and defending claims, are hard to overstate.

3️⃣ Structured Safety Programs: Companies with clear safety policies, regular training sessions, and consistent accountability for drivers are highly valued by underwriters. No exceptions to enforcement shows a culture of accountability.

Key Takeaway: The financial arbitrage between the risks of neglecting safety and the benefits of implementing best practices will only continue to grow. Companies that prioritize compliance, technology, and structured safety programs will reap the rewards in the form of better rates, stronger partnerships with carriers, and long-term operational success.

 

Ryan Hanigan
🚛 Helping Trucking Companies Optimize Their Insurance & Safety Programs
📧 Email: ryanhanigan@jjdoorhy.com
📞 Phone: 708-955-5989
🌐Company Website: www.jjdoorhy.com

 

 

 

A man in blue shirt standing with arms crossed.
A man in blue shirt with arms crossed.

Is Your Company Ready for a More Sophisticated Commercial Insurance Program?

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As businesses scale, they often outgrow traditional guaranteed-cost insurance programs, which, while straightforward, lack the flexibility and cost efficiency larger organizations require. In 2025, we focused on consulting clients—both longstanding and newly acquired—on advanced insurance solutions tailored to their evolving risk management needs. Below are some examples of these programs and their benefits:

 

  1. Captive Insurance Programs

Captive insurance is a sophisticated alternative where businesses create or participate in their own insurance company to cover specific risks. Captives are particularly appealing for larger organizations looking for customization and financial efficiency.

Types of Captives:

  • Single-Parent Captives: Fully owned by one company to insure its risks.
  • Group Captives: Shared by multiple companies with similar risk profiles.
  • Rent-a-Captives: A cost-effective option allowing companies to “rent” a captive infrastructure without owning it.

Benefits:

  • Cost Control: Retain underwriting profits and reduce dependency on commercial insurers.
  • Customized Coverage: Tailor policies for unique or hard-to-insure risks.
  • Risk Management Incentives: Encourages proactive loss prevention.
  • Access to Reinsurance: Captives can directly access reinsurance markets, often at lower costs.

Best Fit:

  • Companies with predictable loss patterns and annual premiums of $1-2 million or more.
  • Industries like trucking, construction, manufacturing, or healthcare, where unique risks demand tailored solutions.

2. High Deductible Program 

High-deductible programs are designed for companies willing to retain more risk in exchange for significantly lower premiums. These plans are ideal for organizations with the financial capacity to handle predictable losses below a certain threshold.

How It Works:

  • The company pays for losses up to the deductible limit, while the insurer covers costs exceeding that amount.
  • Often paired with stop-loss insurance to cap the company’s total exposure.

Benefits:

  • Premium Savings: Lower premiums by assuming greater risk.
  • Cash Flow Control: Pay claims as they arise, improving cash flow management.
  • Claims Oversight: Gain more control over claims handling and settlement processes.

Best Fit:

  • Companies with strong financial reserves and robust risk management practices.
  • Organizations with stable and predictable claims history.
  1. Composite Rating Structures

Composite rating simplifies premium calculations for larger companies with dynamic operations, such as trucking fleets or construction firms. Instead of charging premiums based on individual units (e.g., per vehicle), a composite rate applies to a broader exposure base.

How It Works:

  • A single rate is applied to metrics like total mileage, payroll, revenue, or vehicles.
  • Adjustments are made at the policy’s end based on actual exposure data.

Benefits:

  • Administrative Simplicity: Streamlines premium calculations for large or frequently changing exposures.
  • Predictable Costs: Stabilizes premiums despite fluctuations in fleet size or operations.
  • Fairer Pricing: Aligns costs with actual risk exposure.

Best Fit:

  • Companies with large fleets.
  • Businesses with fluctuating operations or seasonal variability.
  1. Loss-Sensitive Rating Programs

Loss-sensitive plans tie insurance costs directly to a company’s loss experience. Examples include retrospective rating plans and self-insured retention (SIR) programs.

How It Works:

  • Retrospective Rating: Initial premiums are adjusted after the policy period based on actual losses.
  • Self-Insured Retention (SIR): The company assumes full responsibility for losses up to a set amount.

Benefits:

  • Performance-Based Savings: Lower costs for companies with strong safety records.
  • Customizable Risk Sharing: Aligns insurance costs with actual claims.
  • Incentivized Risk Management: Encourages continuous safety improvements.

Best Fit:

  • Organizations with a commitment to proactive risk management.
  • Businesses seeking direct financial benefits from reducing claims.
  1. Risk Retention Groups (RRGs)

RRGs are group-owned insurance entities formed by businesses with similar risks. Members pool resources to insure their liabilities, sharing both costs and benefits.

Benefits:

  • Cost Efficiency: Lower premiums through shared risk and collective purchasing power.
  • Tailored Coverage: Customized policies for niche risks.
  • Member Control: Greater influence over claims management and underwriting decisions.

Best Fit:

  • Industries with specific liability needs, such as trucking, healthcare, and professional services.
  • Companies seeking a collaborative approach to insurance.

3 Minute Monday – Commercial Property Crisis

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The insurance industry is beginning to see an alarming trend of workers’ compensation claims roll in from extended mask wearing.

Of course, the CDC recommends the masks to prevent the spread of COVID-19. However, OSHA approved air quality monitors also indicate the masks do create a hazardous breathing environment. This is leading to negative side effects such as anxiety, headaches, increased heart rate, dizziness and fatigue.

To be clear, I am not condemning the masks. My only interest is to make sure insureds aware of the potential negative side effects so that you can take the appropriate steps to mitigate the impact on the health of your employees.

For more information you can visit: Mask Wearing Prevents COVID Spread; But Could They Also Be Ushering in Workers’ Comp Claims?

Below are Four Steps for combating the effects of wearing the mask from PN Medical.

Combating the Effects of Mask Wearing

TAKE 5 QUALITY BREATHS

  • A Quality Breath = 4 seconds inhale through the nose, 6 second exhale through the mouth. 2 second pause. Repeat 5 times.

LONGER AND SLOWER

  • Notice people around you. Some change their breathing patterns while wearing a mask. Combat this by taking longer slower breaths while you are wearing yours.

TAKE MASK BREAKS

  • If you are wearing a mask for extended periods of time, take breaks from the mask periodically when it is safe. Follow Step 1 above.
  • Breaks between times wearing a mask can reduce the negative effects.

RESPIRATORY MUSCLE TRAINING (RMT)

  • RMT helps to improve the function of respiratory muscles.
  • For 5 minutes in the morning and 5 at night, practice RMT.
  • RMT is valuable in the face of COVID-19 (Severin et al 2020)

If you have any questions, I can be reached by email at ryanhanigan@jjdoorhy.com or through PM here on LinkedIn.

Source: PN Medical

EMR AND UNDERSTANDING WHEN YOUR CLAIMS DATA IS SUBMITTED TO NCCI

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The deluge of Covid-19 lawsuits against employers once feared at the beginning of the pandemic has fortunately not materialized and NCCI’s rule change will exclude Covid-19 related claims from experience rating calculations. However, Covid-19 has had a drastic impact on backing up the court systems and claims are staying open longer, becoming more expensive, and taking longer to get resolved.

This places an even greater importance on agencies to monitor open claims to mitigate their affect on an insured’s experience mod. The purpose of this blog is to review the timeline for when your claims data is submitted to NCCI and what we as agents can do prior to your data being submitted.

Losses included in the first reporting of a given policy must be valued as of 18 months after the month in which the policy became effective. Subsequent reporting of loss data (2nd–10th) must be valued 12 months after the valuation date of the preceding report. Each report level must be filed no later than two months after the respective valuation date. Please refer to the following chart for specifics.

 

 

For example, claims data from a policy effective 1/1/2020 will be submitted to NCCI somewhere between 7/1/2021 and 9/1/2020. Once your data is submitted to NCCI it is that data that will be used to calculate your experience mod for the coming year. It is extremely rare for NCCI to reevaluate and update progress on a claim after your data has been submitted.

For this reason, it is important to ensure the following prior to your data being submitted:

  1. All dubious claims are thoroughly investigated prior to data submission date.
  2. All open claims are reviewed with the claims adjustor to ensure the reserves are as minimal as necessary.
  3. For some claims, it might be necessary to include the attorney defending the claim and discuss the probability of prevailing. Even if the exposure for the claim is large, a high probability of prevailing over a fraudulent claim could justify a claims adjustor lowering the reserve of an open claim.

These are not fail safe strategies and going through these steps will not always result in reducing open claim reserves. It is always worth trying though because this data directly effects your experience mod and could result in higher premiums and potentially preclude insured’s from bidding on jobs if your in an industry that requires experience mods 1.0 or below.