As we head into 2021, fleet owners and owner-operators are making plans to tackle long-standing issues in the trucking industry. As the driver shortage ebbs and flows, and spot rates are slowly favoring carriers, insurance rates and payments remain a top concern.
Nuclear Verdicts Hinder the Trucking Industry
Over the past few years, fleets and independent drivers have witnessed a rise in “nuclear verdicts.” Nuclear verdicts occur when a court fines a truck driver – or the fleet they represent – an inordinate amount for an accident, even if the fault is still contested. These nuclear verdicts can amount to hundreds of thousands or even millions, depending on the judge and the maximum allowable charge for traffic infractions. As a result, insurance fees have skyrocketed for the trucking industry. Even new trucking companies with spotless records are facing high down payments just to conduct business or add new trucks to their fleets.
Safety is a Top Priority
To reduce the number of nuclear verdicts, the FMCSA made safety the number one focus beginning in 2016. Since then, the trucking industry has experienced the implementation of the ELD mandate, many revisions to hours of service, mandatory breaks, and more. Data has shown that while the focus on safety has reduced some accidents, the measures taken have decreased efficiency for the trucking industry, leading more drivers to feel under pressure to make deliveries within the new HoS, which can result in more driving accidents. Between nuclear verdicts and the long-term effects of legislated safety measures, the trucking industry is left paying higher premiums on their insurance policies.
Making Trucking Insurance Easier
Small and medium-sized fleets, as well as owner-operators, are the ones impacted the most by high insurance down payments. The cost is often steep and nonnegotiable. At Single Point Capital, we believe trucking companies and owner-operators should be able to thrive and grow. To help with insurance down payments, we have expanded our services to include our deferred down payment program. We will pay up to 50% of your insurance down payment so you can keep your business moving. Once approved, we will spread out the balance over time and it can be repaid from a portion of invoices you factor with us. This program is only available to trucking clients who sign up for our comprehensive factoring services. To learn more about our insurance down payment deferment programs, contact the team at Single Point Capital today.