Risky Business

Are you Better than Average

Hi Everyone,

With an “eclectic” cast of characters coming through our doors recently, it got me thinking…are all Expediters equal?

 

Well that’s a loaded question to be sure….bet I could get some interesting replies on the subject!   Since this column is for insurance or risk related matters, I’ll try to stay focused.

 

In the world of insurance, there is a difference between one “risk” versus another, and the attempt is to manage that varying “risk”.   Insurance companies are essentially betting on that risk by attempting to collect the appropriate premium that will return a profit for their gamble.

 

All Expediters are not the same.   If the Insurance Company thinks you are a risk they can make a profit on, they will charge less premium.   If they think it’s likely there will be a loss on the gamble they will charge more, or even pass on that bet.

 

When an Insurance Company looks at a group, or pool of bets…then they must charge for the worst risk in the bunch to ensure they make a profit on their gamble.

 

Remember that when you choose any Motor Carrier program, including insurance, that you are in a pool of that group of other Owner Operators.   If you are an Expediter with prior losses, violations, safety breaches, etc…then keep your head low and stay in the pool.

 

But if you are an Expediter with few prior losses, violations and are diligent on safety, then you shouldn’t pay more for others who do have these challenges and it’s time to remove yourself from the pool.

 

In the event you may feel you’re abandoning the ship by looking out for your own expenses, remember that your Motor Carrier receives benefits as well including increased retention,  reduced claims and support of the Independent Contractor Owner Operators status currently under fire.

Warm Regards,

Shelly Benisch, CIC    [email protected]

Commercial Insurance Solutions, Inc.  (CIS)  www.MyCISagent.com