Liability insurance for trucking companies jumped by nearly a third last year, with even higher increases for those renewing after the Sept. 11 terrorist attacks, and yet higher prices for umbrella coverage.
That's according to the American Trucking Associations' survey of 1,000 trucking companies documenting the severity of the rising cost for primary and "umbrella" insurance.
The survey shows that primary, or general liability, rates increased by 32 percent for carriers renewing in 2001, with those renewing their policies after Sept. 11 paying an average 37 percent more. Renewal rates for umbrella insurance in 2001 were pegged at an average 74 percent, while rate increases after 9-11 climbed to 120 percent, with one hike of over 1,000 percent.
"This information from our members demonstrates the depth of the insurance crisis in the trucking industry," said William Canary, ATA President and CEO. "Considering the fact that trucking moves a majority of the freight in America, a crisis like this is a real problem for the national economy."
Canary said that while some increases in costs were expected because of Sept. 11 insurance losses, the jump in the percentages of increases is perplexing because both government statistics and the industry's experience show that trucking companies are driving more safely than ever before.
ATA Chairman David McCorkle (McCorkle Truck Lines, Okla.) has appointed an Insurance Task Force to study the issue. The panel, chaired by Fred C. Burns, Jr. (Burns Motor Freight, W.V.), includes motor carriers of all sizes, representatives of the state trucking associations, and some of ATA's insurance industry partners. Its role is to highlight the trucking industry's insurance cost situation and to seek long and short-term responses.
"The best long-term solution," said Burns, "is legal reform at the state and federal levels. Today, jury awards not based on any common sense reality are driving up insurance rates and continue to be completely out of hand. In addition, the 50 states have 50 different legal systems in which insurance companies and the trucking industry have to operate.
"Law enforcement and the insurance companies have a role here, too," Burns added. "We need stepped-up, tougher enforcement of traffic safety regulations, and insurance companies must begin denying coverage to unsafe carriers and drivers who don't belong on the road."
For the short term, ATA is developing educational materials for state association members to assist them in providing and promoting better safety programs and practices, better driver hiring, training, and monitoring systems, better safety incentive programs, better loss prevention systems--all of which can lead to lower insurance rates.
A summary of the ATA Truck Insurance Survey is available on www.truckline.com or from the ATA Office of Public Affairs (703) 838-1836.
That's according to the American Trucking Associations' survey of 1,000 trucking companies documenting the severity of the rising cost for primary and "umbrella" insurance.
The survey shows that primary, or general liability, rates increased by 32 percent for carriers renewing in 2001, with those renewing their policies after Sept. 11 paying an average 37 percent more. Renewal rates for umbrella insurance in 2001 were pegged at an average 74 percent, while rate increases after 9-11 climbed to 120 percent, with one hike of over 1,000 percent.
"This information from our members demonstrates the depth of the insurance crisis in the trucking industry," said William Canary, ATA President and CEO. "Considering the fact that trucking moves a majority of the freight in America, a crisis like this is a real problem for the national economy."
Canary said that while some increases in costs were expected because of Sept. 11 insurance losses, the jump in the percentages of increases is perplexing because both government statistics and the industry's experience show that trucking companies are driving more safely than ever before.
ATA Chairman David McCorkle (McCorkle Truck Lines, Okla.) has appointed an Insurance Task Force to study the issue. The panel, chaired by Fred C. Burns, Jr. (Burns Motor Freight, W.V.), includes motor carriers of all sizes, representatives of the state trucking associations, and some of ATA's insurance industry partners. Its role is to highlight the trucking industry's insurance cost situation and to seek long and short-term responses.
"The best long-term solution," said Burns, "is legal reform at the state and federal levels. Today, jury awards not based on any common sense reality are driving up insurance rates and continue to be completely out of hand. In addition, the 50 states have 50 different legal systems in which insurance companies and the trucking industry have to operate.
"Law enforcement and the insurance companies have a role here, too," Burns added. "We need stepped-up, tougher enforcement of traffic safety regulations, and insurance companies must begin denying coverage to unsafe carriers and drivers who don't belong on the road."
For the short term, ATA is developing educational materials for state association members to assist them in providing and promoting better safety programs and practices, better driver hiring, training, and monitoring systems, better safety incentive programs, better loss prevention systems--all of which can lead to lower insurance rates.
A summary of the ATA Truck Insurance Survey is available on www.truckline.com or from the ATA Office of Public Affairs (703) 838-1836.
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