The trucking industry continues to grapple with rising insurance premiums, but high costs are not the only challenge. Risk management issues, particularly those related to the transition to zero-emission vehicles, cybersecurity, and litigation, have also become significant concerns for fleets.
In California, where the state is pushing towards zero-emission trucks, the Department of Insurance has proactively sought to ensure that commercial insurance is available and affordable for these new technologies. Following the enactment of Assembly Bill 844, the Department of Insurance is gathering data to identify potential barriers to expanding insurance options for zero-emission vehicles and is working closely with air quality regulators to make this information publicly accessible. This initiative is part of a broader effort to support the state’s transition to clean-air technology.
Beyond California, other states like New Jersey are implementing new insurance requirements, such as a law mandating heavy trucks to carry a minimum of $1.5 million in liability insurance, double the federal minimum. This law has faced opposition from industry groups, including the American Trucking Associations, which argue it could negatively impact interstate carriers.
The trucking industry is also contending with rising litigation costs, catastrophic losses, and cybersecurity threats, all of which are driving up insurance rates. Experts like Chad Krueger of Fusable Risk Intelligence highlighted the pressure on insurance carriers to manage these escalating costs, leading to higher premiums. Some fleets are exploring self-insurance and captive groups as alternatives, though these options are challenging to access and require rigorous safety standards.
Cybersecurity is another growing concern, with increasing risks from social engineering and artificial intelligence (AI). At a recent National Motor Freight Traffic Association conference, experts emphasized the importance of robust IT infrastructure, including multifactor authentication and complex passwords, to protect against cyber threats. Companies are also encouraged to consider cybersecurity insurance and ensure their contracts meet evolving requirements.
As the trucking industry navigates these complex insurance and risk management issues, staying ahead of emerging challenges and adapting to new regulations will be crucial for maintaining stability and growth.
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