If they raise the liability minimum to $2 million or more...

In my neck of the woods they require WC (@17% For trucking) as well as 1% to the state for a program they're starting next year for “extended leave with pay program” that they require be funded starting this year, as well as a couple notable differences between employees and contractors that affect the bottom line amongst other things. In addition to tax implications.

Maybe it won’t matter as much to have that change come about in states that are somewhat friendly toward business already: I think it will affect some of us though.

Certainly somewhat off topic/ but I feel like its a bit related, being that with rising costs, revenue must increase at least as much. Which i feel would be pretty hard to match the level of increase in costs over time as a “one truck chuck” without increasing capacity to some degree.

 

Is comp only through a risk pool or can you get on your own? At least then you get rebates on your experience mod.

 

I hadn’t been able to find a risk pool that met the states requirements when i had been looking for it a few years back: something about the language in my state’s law prevents a lot of underwriters from even offering it for my location?

 

Listening to the "experts" here is amusing to one who actually is in the trucking insurance business, and manage a group of underwriters, selecting and pricing truckers.

Will a $ 2,000,000 mandatory minimum FMCSA limit, in lieu of the current $ 750,000 cost you all more? Of course......you will now have to have more coverage than you did in the past.

Gone will be the day of the single unit, new entrant asking for a $ 750,000 only limit (no um/med/phys dam/cargo) so he can haul cans in SoCal, or Houston, or Miami etc

This is all part of the current idea of "redistribution of wealth". You can afford insurance, Mr Claimant can now sue you for $ 2MM instead of $ 750,000 so he gets more of your wealth.....seems fair, right?

Of course it's not "right", but that's the mentality we as an insurance carrier have to deal with. When claimant's attorney asks for policy limits and we don't roll over and pay a stupid amount for a "minor" incident, and take a chance with a trial, we are risking a $ 1,000,000 limit costing us as high as $ 10,000,000....for bad faith in not settling within your policy limits. Obviously with higher limits will come more and higher jury awards.....and we're back to re-distribution of wealth.

Those that sit on juries and figure the claimant is a good old boy and DESERVES your $ 2,000,000 are as much of the problem, as the blood sucking attorneys who advertise with billboards next to the freeways, and the same attorneys who sit in the state capitols and in DC, writing our laws. They are clearly NOT going to change legislation to kill the goose that laid them a Golden Egg.

 

Monica.... Was Bill right? Was she pretty good on her knees?

 

Typically the extra million will cost 15 - 30% depending on the insurance company.

Those that have to buy reinsurance may be higher, or in some cases may not be able to write a policy @ a $ 2MM limit. Which would require a separate excess policy.....which may be a higher percentage of the primary.