The Skinny on Transportation Insurance in Today’s COVID Climate
Everyone in this industry took most of their vehicles out of service last spring. Those that did so, received a discounted insurance rate. As counties throughout California and beyond are opening, we are seeing signs of life – albeit mostly retail work – return. It’s probable that many of you are considering taking a vehicle or two out of mothballs. When you do so, I regret to inform you that your premiums will be much higher than they were before they were shuttered. It is simple math and nothing nefarious on the part of the insurance companies. One vehicle is more expensive to insure than, say three or four or ten or fifty. Whatever your old plan was is no longer so you must start anew with literally a new program.
Insurance companies are finding other industries to underwrite while transportation across all channels is in a lull. That means there is less competition. As an example, Northland Insurance is no longer writing in California effective this month. Philadelphia, Lancer and limited to select companies National Interstate are still underwriting in our state. That’s only three companies (or at least that is all I could find and I made a lot of calls). There is a reason there are so few – reward vs. risk and the transportation revenues just don’t bear out for insurers at this time. The good news is that the companies who are in the market have been very fair to us during these times while they have suffered heavily on the commercial side. I believe they will continue to nurture us back to health and will work with each of you on an individual basis – relationship plays a huge role in all outcomes so let civility reign.
What can the GCLA do about this you ask? Just what I am doing now. We can inform our members of the realities of what it costs to fire back up. We can give you advice on what to do, help you to consider all options like pooling fleets, and more. This is one reason we feel it’s time to get a Town Hall meeting on Zoom initiated for you. Selim Aslam, GCLA board of director and CEO of MIB Worldwide Chauffeur Services has offered to moderate for us. Watch for a date to our first Town Hall as we sort out the details. Also, email me a must-have topic and I’ll do my best to accommodate you.
There is something else you need to be aware of regarding insurance. Risk management is now front and center in every conversation I have with travel management companies. Corporations are scared to death to have their employees travel on business or even return to their offices because they fear liability issues relating to Covid-19. As an employer, you too must face the new reality that your frontline has to be protected. You do not want any illness on your watch – regardless of passenger or driver.
This is the absolute reason the GCLA endorsed SafeCleanRide. This is a 3rd party TRAINING program that requires participants to be TESTED on hygiene and sanitation safety. Those that pass the test receive a certificate of completion. This is a standardized program that helps mitigate risks and this MATTERS to the risk management team at insurance companies – and it will help protect you as an employer. Covid has opened a pandora’s box to a world on hyper alert of germs. Operators who are taking a passive stance on this, who think they have covered their basis because they have created company protocols need to think again. Training and testing conducted independently takes this matter to a more secure level. It will help to mitigate risks involved with contagions and public and employee health matters and may help, God forbid, if you should ever have to legally defend yourself. Go to www.GCLA.org and get certified.
Stay strong!
—Sara Eastwood Richardson
