OTTAWA, Ont. — Motor Carriers across Canada are being hit hard by sky rocketing insurance costs and shippers should expect to hear from their carriers soon.
According to the Canadian Trucking Alliance (CTA) many carriers from across the country have begun to complain about massive increases in liability insurance premiums — even in the case of carriers with excellent loss ratios.
Increases of 40 to 50 per cent are common and 100 to 200 per cent increases are not unheard of at this point. Some reasons for the increases include capacity reductions, the Sept. 11 impact on reinsurance and the insurance industry’s reportedly low level of profitability.
“Like the escalating cost of fuel, there is no quick solution to this problem. Ultimately, carriers will have to deal with their insurance providers and their customers. Our job is simply to make the shippers and carriers aware of the situation,” says David Bradley chief executive officer of the CTA.
He believes the increased cost should be reflected in freight rates.
“It would be tough to develop a general formula for the entire industry. Things really need to be examined on a case-by-case basis — every carrier’s claims/loss experience, deductible and level of self-insurance will be different. All CTA is attempting to do is raise awareness and continue to push for meaningful safety measures and incentives for the responsible, safe operators.”
Truck News is Canada's leading trucking newspaper - news and information for trucking companies, owner/operators, truck drivers and logistics professionals working in the Canadian trucking industry. All posts by Truck News