What to look for in your transport and commercial truck insurance broker
For commercial transport fleet owners and operators, having access to a transport risk and insurance specialist who knows the business, knows the industry and lives and breathes commercial transport and logistics, can make a positive difference to your transport business. Their knowledge, regular communication and expertise can help minimise downtime and disruption, help you get the most from your insurance policy, allow you to retain business, and forecast effectively.
There are several things that specialist commercial truck insurance brokers will do differently (and better) for your business; let’s look at some of the main pain points we often see, and how a relationship with a specialised transport broker can keep your trucks and cargo moving and add value to your business.
1. Accident and trucks off the road
A general insurer may cover you for an agreed amount in the event of an accident for the cost of repairs for your truck, but what about the loss of income that results from being a truck or vehicle (and possibly a driver) down? A specialist will know to discuss ‘loss of use’ cover with you, which can cover you for an agreed number of weeks for a replacement truck when yours goes in for repair, or you are waiting on a claims settlement. That way, you’re back on the road quickly, and there’s no concerns over losing a customer contract because of delays.
2. Staff benefits - retaining key personnel and talent
Does your current broker look at the key people in the business when assessing your needs? You may well have people in your business that are almost indispensable; those are people you want to retain. A general insurer may be unlikely to factor that into your cover. A specialist transport broker will look beyond your immediate transport needs and use their broad network to offer you options for a staff benefits package that might include a medical scheme, or life insurance to help retain those staff. It’s unlikely a general insurer will offer that, only a small number of specialised brokers do.
3. Claims management
If you need to make a claim, chances are, it’s a time of tension and potentially stress. Assuming there are no injuries, clients’ first thoughts are often ‘how can I get this settled as quickly as possible?’, and ‘will I lose this contract’?
It’s important for you to help your broker to get all the mitigating factors surrounding the incident in place early so they can quickly manage expectations around the claims process; and swiftly advise what’s covered and what isn’t.
A specialist transport broker will have made it clear to their client at the outset of the policy, what would be covered in an incident, and what wouldn’t. They’ll make sure their client is fully aware of all the benefits and cover under the policy, how the insurer will handle the claim, and the practical realities of it. Clear communication avoids frustration and uncertainty at a time that might be stressful.
For example, if a client‘s truck rolls down a bank in a remote rural area, it could be a week until a loss adjuster can get out to assess it. Communicating this to a client right at the outset of the claim allows the client to plan accordingly, and not wait wondering. Similarly if your truck has dropped a reefer of milk on the Southern Motorway, and there are clean-up costs, they should quickly advise you what you’re covered for under the policy and help you assess any costs the business will need to cover itself.
There’s another thing a specialist transport broker will do too, and that’s actively represent your interests to ensure that the insurer is handling the claim promptly and within the insurance council guidelines.
Effective brokers will also do these things. Does yours?
4. Regular meetings and premium forecasting for your P & L
If you operate a medium-sized/large transport fleet, you should expect to see your broker face to face at least a few times a year, typically every quarter. If, as a large business, the only time you hear from your broker is at contract renewal, you might want to consider whether they’re giving you the best possible service.
Meeting regularly means your transport broker can update you on how the market is performing, review your claims and loss ratio with you, and advise you on the likely effect on your premiums for the coming year so you can forecast this aspect of your P & L accurately.
5. The good oil on underwriters
Specialised transport and truck insurance brokers are 100% in the transport and logistics space all day, every day. Marsh offers specialist expertise in transport and trucking insurance with a network of brokers all over the world. Our brokers have a great handle on which underwriters perform well in all areas pertinent to transport and logistics – we know which underwriters are innovating, who is performing well in the claims space, who has updated policy wordings.
We also know exactly what your policy will entitle you to in the event of a claim, and we’ll share this information with you. A specialised broker will know the nuances of the policy their clients have; it‘s a good idea to check if your broker understands all the benefits of yours.
Because Marsh specialists form good relationships with specific contacts within the underwriting business, we know how to unlock those benefits in the event you need to make a claim. For example, you may be entitled to cover for a relief driver if yours is injured in an accident. Do you know if that’s a benefit under your current policy?
6. Truck telematics technology and smart fleet risk management
A specialist transport broker will work with the underwriters and your business to manage your fleet and trailer movements to be safer and work to the best advantage for you, lessening risk to your people, and business – in addition to helping keep premiums down.
One example of this is accessing your fleet telematics data. Looking at that in relation to your loss ratios, a good specialist broker will collaborate with you to mitigate risks.
Telematics case study
Looking at her customer’s telematics data, our broker identified that a number of her client’s trucks had rolled on a particular road, with a different driver each time, indicating the problem was more to do with the road, than driver error. That client has now geo-fenced that road and instructed drivers not to use it and instead take a longer but safer, route.
The broker was able to show the client that whilst fuel and time costs increased on the “long way around”, that increased cost amounted to just 2% of the total amount of the claims. So a simple route change lessened accident risk and a significant premium increase. In this instance, our broker was also able to share the information with the underwriter, who in turn shared it with other clients, improving road safety throughout the industry.
Similarly, where a driver is having recurring safety issues, in some cases sleep apnoea has been a factor, which has led to a C-PAP machine being made available. By thinking outside the box your broker (and insurer), can add value, mitigate risk and keep premiums down year on year.
Telematics data is useful for a skilled broker when the fleet is parked up too. Our specialist broker noted one client who regularly parked up approximately $35M worth of truck and trailer assets in a yard, side-by-side 2 metres apart, but realised their default cover limit with another insurer was for only $5M. In the event of a fire, this would result in a crippling business loss. With the correct cover in place, that client was also able to reduce fire service levies.
The habits of highly effective specialist transport and commercial truck insurance brokers
Do you recognise any of the following pain points? They’ll help you choose a broker who can navigate the complexities of your commercial fleet transport insurance. The right broker will remove the worry of adequate insurance for your business, and be a valuable partner in safeguarding your assets, helping your transport business thrive.
1. Complexity of insurance need
Pain point: Fleet operators often grapple with a myriad of insurance options and find it challenging to put in place the right coverage for their specific operations.
A good broker: Specialises in transport insurance and has in-depth industry knowledge to provide insurance solutions that address your needs.
2. Unclear communication
Pain point: Confusion often arises due to unclear communication regarding coverage options, claims processes, and policy terms.
A good broker: Communicates openly and clearly. They should be approachable, able to clarify complex concepts, and ensure that you fully understand your insurance policy.
3. Expertise in claims management
Pain point: The claims process can be fraught with complications, leading to delays and misunderstandings when accidents occur.
A good broker: Will have a strong background in claims handling. They should provide you with guidance and support throughout the claims process, so the experience is smooth and stress-free for you.
4. Rising premium costs
Pain point: Fleet operators often struggle with fluctuating insurance premiums, making it difficult to budget effectively.
A good broker: Will be able to provide premium forecasting and access various underwriters to negotiate competitive rates, helping you manage costs effectively.
5. Thorough and comprehensive risk assessments
Pain point: Inadequate coverage due to complexities a fleet operator may not be aware of.
A good broker: Conducts thorough risk assessments and can identify potential vulnerabilities specific to your fleet, ensuring you’ll have all the information to put comprehensive coverage in place.
6. Limited coverage options
Pain point: Fleet operators may not have access to sufficient types or levels of coverage that meet their operational requirements.
A good broker: Partners with multiple underwriters to offer a wide range of insurance solutions, ensuring you can select the best fit for your needs.
7. Low employee retention
Pain point: In the competitive transport sector, retaining talent can be challenging without attractive benefit packages, including insurance.
A good broker: Understands the need to retain good people, and offers value-added coverage options, such as medical and life insurance, that can enhance your employee benefits program and help you retain staff.
8. Geofencing and driver behaviour monitoring
Pain point: Understanding and mitigating risky driver behaviour and dangerous road conditions is crucial for fleet safety but can be challenging.
A good broker: Offers fleet risk management services, including telematics data analysis, to help you monitor driver behaviour and identify dangerous areas, leading to improved safety measures.
9. Regulatory compliance challenges
Pain point: Navigating the complex legal and regulatory landscape can lead to compliance issues that expose your fleet to liabilities.
A good broker: Is well-versed in industry regulations and compliance requirements, providing insights and solutions to keep your operations legally protected.
10. Inadequate support
Pain Point: When support is lacking from brokers, fleet operators may feel lost when it comes to understanding or managing their insurance policy.
A good broker: Emphasises client support, offering dedicated assistance and prompt responses to queries.
By recognising these ten pain points, you can select a broker who has the right attributes to navigate the complexities of your fleet transport insurance. The right broker will lessen your insurance burden and be a valuable partner; safeguarding your assets and enhancing your operational success.
