Minn. Trucking Industry Hit Hard by Rising Insurance Increases

January 23, 2002

Minnesota’s trucking firms have been hit hard with insurance rate increases according to results of a joint survey conducted by the Minnesota Trucking Association (MTA) and the American Trucking Associations (ATA).

According to PR Newswire, the survey indicates that primary, or general liability, rates increased by 32 percent for carriers renewing in 2001, with those renewing their policies after September 11, 2001 paying an average 37 percent more. Renewal rates for umbrella insurance in 2001 were pegged at an average 74 percent, while rate increases after the terrorist attacks climbed to 120 percent, with one hike of over 1000 percent.

MTA President John Hausladen said the association knew the insurance situation was tough, but it did not expect the results to be this bad.

ATA President William Canary added that while some increases in costs were expected because of insurance losses associated with Sept. 11 events, the jump in the percentages of increases is perplexing because both government statistics and the industry’s experience show that trucking companies are driving safer than ever before.

“Hausladen added that to get at the core of the problem, there must be reform for the tort laws of both Minnesota and the nation. He noted jury awards are driving up insurance rates and are out of control, adding the legislature needs to enact real joint and several liability reforms.”

In the meantime, the MTA is working with the ATA to develop educational materials for state association members — of all sizes — to assist them in providing and promoting better safety programs and practices, better driver hiring, training, and monitoring systems, and better safety incentive programs, better loss prevention systems.

Topics Trucking Minnesota

Was this article valuable?

Here are more articles you may enjoy.