Insurance matters

"When a major firm withdraws, it sends everyone scrambling for insurance and the other companies are waiting for them with open arms and, in certain cases, higher rates," says [Allan Burnet]. "Kingsway's collapse has stabilized rates; the downward spiral is over. While the remain...

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Bibliographic Details
Published inTruck News Vol. 31; no. 6; p. 46
Main Author Rudolfs, Harry
Format Trade Publication Article
LanguageEnglish
Published Don Mills Business Information Group 01.06.2011
Subjects
Automobile insurance
Insurance coverage
Insurance policies
Trucking industry
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Summary:"When a major firm withdraws, it sends everyone scrambling for insurance and the other companies are waiting for them with open arms and, in certain cases, higher rates," says [Allan Burnet]. "Kingsway's collapse has stabilized rates; the downward spiral is over. While the remaining players would like to see substantial increases it has not yet translated itself to our clients' renewal conditions. In certain cases there are small increases but for the majority of carriers premiums are stable." "An accident that formerly cost $500,000 could now be awarded $3.5 million," says Burnet. "We see carriers running around with $2 million liability but I don't think it's enough." "We protect the trucker in a lot of different ways," says NTL president Rod Stiller. "One of the first things an owner/operator might do is opt out of WSIB. It's expensive, it only covers on-the-job accidents, and it only pays a percentage of net income. For some owner/ops that's very small because of all their tax write-offs." Stiller adds that most of his clients run the States and want coverage there as well.
ISSN:0712-2683
1923-3523