It’s not often that you can get 12 of the industry’s most respected CEOs to set aside their competitive differences and share their strategies for success.
But that’s exactly what the OTA orchestrated with its recent executive forum.
Today we look at the advice provided by five CEOs on managing insurance costs:
Brian Taylor, Liberty Linehaul: You need to be aware of what drives your costs on insurance is it your safety program or maintenance program? We’ve communicated a lot of times directly with the insurance company, even going down to their office. Although I have a very good broker, I feel that no one can explain better what our business is about and what we are doing to reduce their costs.
Evan MacKinnon, MacKinnon Transport: There is an opportunity to negotiate with your broker a broker’s fee rather than paying the percentage commission. There have been lots of carriers talking about receiving 40-50% increases and there is no reason the broker needs a 40-50% increase. You can negotiate a deal with them to look after your insurance. It can make a big difference in what you pay. Also, don’t go to market every year because the underwriters get so tired of looking at your file they don’t bother to put the effort into it. Take a real good shot at the market every three years and the underwriters will look at the file thoroughly and give it their best shot in terms of pricing.
Don Streuber, Bison Transport: Insurance is an area that trucking companies don’t understand fully. You have to find a broker that you can partner with. You need somebody who can be your advocate, fighting on your behalf. And recognize the things you need to communicate such as the quality of the driver you are hiring. Understand where there are flexibilities in how policies are structured and determine the best model for your operation. And manage your assets as tightly as you can because every incident is a black mark that increases insurance costs.
Dan Einwechter, Challengeer Motor Freight: Do not trust your insurance agent to develop the profile on your company. Do it yourself and then you have a template from which to work year to year.
Mark Seymour, Kriska Transportation: Take on more risk. If you believe strongly in your principles, there’s always an option to take more risk. We began self insuring a few years ago for collision because we believe firmly that taking that risk was something we were prepared to do. You want to be seen as a low risk client.
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