The Ontario Trucking Association (OTA) has proposed reforms to Ontario’s Facility Association (FA) insurance framework, arguing the system should function as a temporary safety net for high-risk fleets rather than a long-term insurance solution.

The association said it recently submitted a policy brief to Ontario’s Ministry of Finance outlining recommended changes that it believes would help improve safety, accountability and fairness within the trucking insurance market.

These include implementing a “sunset clause” that would establish a 24-month limit for commercial fleets in Facility, requiring stronger underwriting tied to driver history and fleet-level safety practices; incorporating the Ministry of Transportation and FMCSA’s safety performance into risk assessments; and requiring more robust pre-quote risk inspections.

The association also wants to eliminate the ability for commercial trucking companies to opt out of Direct Compensation for Property Damage coverage.

To develop these recommendations, OTA formed a working group of carrier members with expertise in fleet operations, compliance, safety and insurance. The group reviewed challenges within the current Facility Association system, identified gaps and developed proposals for regulators and the government.

FA is a residual market that provides insurance for high-risk or hard-to-place customers, and operates as a non-profit, unincorporated association of insurers. While it is known as the ‘insurer-of-last-resort,’ it does not operate like a traditional insurer.

Instead, it functions as a statutory insurance pool made up of every company licensed to write automobile insurance in the province. When a driver or fleet cannot obtain coverage in the voluntary market, their policy is placed through FA. Premiums, losses and expenses are pooled and shared among insurers based on their market share.

As trucknews.com reported previously, some high-risk fleets rely on Facility coverage for longer than intended, which allows them to bypass high standard-market premiums and safety oversight.