Requirements And Fines For Truckers To Be Tightened Soon
There is a growing jury of growth rates in the freight industry that exceed $ 10 million. These solutions make it harder for transport companies to stay in business.
According to a 2020 report from the American Transportation Research Institute (ATRI), between 2010 and 2018, the average amount of fines for trucking in the United States increased from just over $ 2.3 million to nearly $ 22.3 million – an increase of 967 %.
When companies face a judgement exceeding their insurance limits, it results in higher prices for liability insurance coverage, increased consolidation of larger companies absorbing smaller businesses, and it increases the odds that companies either go bankrupt or are forced to sell.
These trends align with an increase in fatal trucking accidents, with the National Safety Council reporting a 43% increase in deadly crashes involving large trucks between 2010 and 2019. If companies don’t have high enough insurance limits they risk losing their business, and the judgement will have to be paid one way or another.
In August 2021, a jury ordered the payment of $ 1 billion to two shipping companies in connection with the accident that led to the death of a student at the University of North Florida. In October 2020, another Florida jury ordered the trucking company to pay $ 411 million in favor of a motorcyclist injured in a 45-car accident.
Truck drivers also need physical damage insurance, which protects the truck itself in the event of an accident and can help pay for the cost of repairing or replacing the vehicle. Meanwhile, cargo insurance covers damage caused to the cargo that the trucker transports.
While larger trucking companies may be able to absorb the rising cost of insurance, smaller and mid-sized operations may struggle and ultimately pass these costs onto their customers. For smaller operators, it’s more about cost than it is about availability.
Given these concerns, smaller trucking companies may prefer risk. They can also waive adequate insurance limits as they are not available. But if a huge fine is imposed that exceeds the insurance limits of the company, it could lead to bankruptcy of the organization or force the owners to sell the company.