Is the Federal Motor Carrier Safety Administration’s work to raise the minimum amount of liability insurance required for carriers warranted?

DAT Solutions’ Don Thornton says no, and in a recent blog post published on DAT’s site last week, he gives three key reasons.

The first, , is that the data on insurance claims for crashes involving trucks shows that less than 3 percent of claims exceed $500,000, as the graph to the right notes. And just one percent exceed a million. The current minimum is $750,000 — encompassing 99 percent of claims, according to data from ATA.

Second, the trucking industry already faces a capacity crunch and struggles to keep up with the needs of shippers, Thornton writes, and increasing liability minimums would “add another check on capacity growth,” he notes.

Lastly, the increase would hit smaller carriers and owner-operators much harder than larger fleets and could potentially even force many carriers out of business.

Click here to read Thorton’s full blog piece.

FMCSA published last month an Advanced Notice of Proposed Rulemaking, in which it seeks input from carriers on 26 questions, answers for which it says will be used to determine how it proceeds with the rulemaking to raise the minimum liability insurance. Click here to read CCJ’s coverage of those questions and how carriers can give input.

Courtesy of James Jaillet

James Jaillet is the News Editor for CCJ and Overdrive. Reach him at jjaillet@randallreilly.com

Potential hours-of-service changes and typical Congressional drama offered quite a ride this week, news wise. Catch up on that story and five others below with the weekly ICYMI Index:

The number of 1 a.m. to 5 a.m. periods a driver’s 34-hour HOS restart will have to include if Congress passes the “Cromnibus” spending bill being debated now. Current rules, implemented in 2013, dictate that drivers’ 34-hour restarts include two 1 a.m. to 5 a.m. periods. The change would be a reversion to pre-July 2013 rules. The House passed the bill late Thursday, and the ball is now in the Senate’s court. Click here to read the full story.

 

The number of petitions for elections the Teamsters have withdrawn since it began its campaign to unionize FedEx drivers and workers. FedEx says the withdrawals are done because the union knows it won’t win the election. So far, three FedEx hubs have voted to join the union, while three others have voted not to. Click here to read the full story.

 

The amount of money, combined, that former Arrow Trucking head James Douglas Pielsticker bilked from one of his creditors, withheld from tax collectors and used for personal expenses, such as weddings, luxury cars and credit card payments. Click here to read the full story.

 

The amount that Volvo and Mack say a truck costs a fleet — per day — when it is stalled for maintenance. To help fleets keep their Mack and Volvo trucks out of the shop and on the road, the companies unveiled this week their Uptime Center. C CJ Equipment Editor Jack Roberts visited this week.

 

The share of Driver Vehicle Inspection Reports that have no defects, according to FMCSA, who unveiled a Final Rule this week — set to be published next week — that will eliminate the requirement that drivers file no-defect DVIRs. Click here to read the full story.

 

The U.S.’ national average price for a gallon of diesel fell below the $3.60 mark for the first time since February 2011 — a near four-year low. It also saw its second biggest price drop in the last 5 years.

 
By James Jaillet
James Jaillet is the News Editor for CCJ and Overdrive. Reach him at jjaillet@randallreilly.com.

I hate winter. Being from the northeastern U.S., I can’t stand the cold and think snow is a major inconvenience — and many homeowners probably share my feelings.

The frigid temperatures and heavy snowfall in cold-weather states, along with wind and hail storms in other areas, can cause damage to homes, and in many instances result in homeowners needing to file an insurance claim.

The Hartford recently analyzed homeowner claims data from the last five full winters (December to March) and conducted an online survey of 184 of its property adjusters to find out what are the most costliest winter claims. The analysis also determined the five most common winter weather claims and the top five U.S. states for winter weather claims.

3. Tree collapse 

Average Claim Cost: $6,000

Tree collapses are the third most costly winter weather claim. Trees in the western U.S. are generally larger than in other parts of the country and claims in this area average more than $10,000. By comparison, tree collapse claims range on average from $3,000 to $5,000 in the northeast, midwest, and south.

The Hartford recommends regularly assessing the trees and other vegetation on your property. Weakened tree limbs can easily come down in windy weather, so the company suggests maintaining and trimming trees near the home that could fall on the house, other buildings or vehicles, before storm season.

2. Hail damage 

Average Claim Cost: $10,000

Hail damage is the second costliest winter weather claim.

In the south, it is three times more common than in other areas. Roof damage from hail is more likely at the end of winter and can lead to claims that average $10,000.

Claims for hail damage are often filed late because the damage isn’t always easy to see. After a large hail storm, a homeowner may want to consider hiring a professional to examine the roof if they’re not able to safely inspect it. Filing an insurance claim as soon as damage is noticed allows the insurance company to start working with the homeowner sooner to minimize the damage.

1. Frozen pipes 

Average Claim Cost: $18,000

According to The Hartford, the costliest cold weather claim is frozen pipes.

While most common in the northeast and midwest, frozen pipes happen in all areas of the country and average about $18,000 per claim.

The Hartford’s adjusters recommend learning where the water shut-off is before you’re faced with a frozen pipe or water leak. If damage occurs from a water leak or frozen pipe, a homeowner may need to find a service company to help clean up the mess, which may help save money and prevent further damage.

To help homeowners prepare for the worst winter can throw at them, The Hartford suggests the following tips:

• Perform seasonal maintenance: Have the heating system serviced on an annual basis, including testing to make sure the heat is working throughout the home. It’s also important to insulate any pipes that are susceptible to freezing and unhook hoses from outdoor faucets.
• Prepare for winter storms: Move vehicles off the street and/or away from large tree limbs. Have the snow blower serviced. Become familiar with how to trip the manual release on overhead garage door openers and have shovels ready ahead of the storm.
• Stock up on supplies: In the event of an extended power outage, have bottled water and non-perishable foods, clothing and blankets, batteries and flashlights. It’s also helpful to have a supply of rock salt, other ice melt or sand, in case the stores run out during a storm.

Half of The Hartford’s adjusters surveyed say they begin preparing their own homes for winter at the end of summer, around Labor Day. Another 45% said they start as soon as the first cold front hits. Only 4% said they wait for a specific storm warning.

In the event that a customer does need to file an insurance claim after winter storm damage, The Hartford’s adjusters recommend homeowners avoid making the most common claim filing mistakes: Not trying to mitigate or limit damage while waiting for an adjuster to arrive, waiting to file a claim, and throwing away items without taking an inventory or capturing documentation.

See the infographic below for more tips from The Hartford and more information on the most damaging winter weather claims.

 
Courtesy of:www.propertycasualty360.com

by James Jaillet

Is the current amount of “financial responsibility” — liability insurance, essentially — for carriers too low?

That’s a question the Federal Motor Carrier Safety Administration has been grappling with since an April-issued report by the agency concluded, yes, the amount is insufficient and that many crashes run well above the current $750,000 minimum.

Trucking groups like the American Trucking Associations and the Owner-Operator Independent Drivers Associations, however, contend that just 1 percent of all trucking-related crashes exceed the minimum, therefore making it impractical to impose an increase and the probable burden of increased premiums on motor carriers.

As part of a potential rulemaking to increase the minimum, the agency published Nov. 26 a list of 26 questions it hopes to have answered by carriers – both fleets and owner-operators.

The agency published the questions as an Advanced Notice of Proposed Rulemaking, aimed at gathering industry input on the issue before proceeding with any rulemaking.

Carriers have until Feb. 26 to offer their formal input on the regulations.gov portal (click here to submit your comment), but here are some of the topics and questions the agency is seeking trucking’s input on:

Premiums:

-What are the current rates for carriers currently? And how do they vary based on FMCSA’s safety ratings?

-How much would premiums increase for each 10 percent increase in the liability insurance coverage?

-What percentage of fleets have coverage currently above the current minimums?

Current insurance levels:

-How often do crashes exceed the current minimums? And how often are carriers liable for the costs exceeding those minimums? Do these crashes cause carriers to go bankrupt?

Impacts of increasing insurance coverage:

-Would the effects of an increase be disparate for smaller carriers relative to larger ones?

-Would an increase affect carriers’ ability to obtain insurance?

-Would increasing minimums affect carriers’ investment in safety programs, preventive maintenance or investing in technology?

Timeline:

-What’s a reasonable phase-in period if FMCSA does increase the minimum coverage amounts?

-Should there be a process for updating the minimum in the future using inflation metrics? And how often should it be updated?

Self-insurance:

-Should the agency enhance the requirement for carriers that self-insure to have “adequate safety programs”?

Courtesy of www.ccjdigital.com