Writing Transportation Policies: Why is it so complex?

October 12, 2022 • Previsor

Zero losses doesn’t mean zero risk. 43% of Missouri work-related fatalities have driving-related exposure. It’s imperative that an agency and the policyholder know the exposures that are involved in their business to ensure a safe and positive experience. 

Watch below as Jennifer Wheatley, Senior Underwriter at Missouri Employers Mutual, explains what information is needed to properly write a transportation risk and what MEM can do to help.  

Why is transportation so complex? 

At MEM, we’ve found that with transportation, you must look beyond protocols, odds and loss runs. Many businesses with increased risk have employees that travel nationwide. This results in high levels of exposure to many different risks.  

Not only do these risks need to be factored in, but what cargo is being transported, if the driver is also the owner of the business, and if the vehicle is leased or owned. 

What agencies should write transportation risk? 

Due to the complexities of writing a transportation risk, an agency should have prior experience. They will know what to look for, including: 

What does MEM look at for transportation risk? 

We always begin looking at any policyholder by identifying their risks and exposures. However, we know there are other factors to consider, such as: 

  • Loss runs 
  • Trends within the business 
  • Growth of the business 
  • How the business compares to the industry as a whole 
  • Policies and procedures 
  • Telematics 
  • E-Logs 

We also review whether a business has disciplinary policies and how they enforce them, along with considering if a business is watching their own loss trends based on data and how they work at mitigating future losses.  

How can MEM help? 

MEM knows transportation risks are complex. Our robust Safety and Risk Services Department works with our Sales Executives and Underwriters to help each agency and business. We have a transportation specialist and committee to keep a close eye on the transportation industry. This ensures we ask potential policyholders all the right questions.  

October 12, 2022
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