Before contracting to drive a tractor trailer for a motor carrier company, you should know the types of compensation offered and the specifics of that carrier’s compensation rules.

Long haul or over-the-road (OTR) truck drivers are most typically compensated for their work according to four criteria. Three of these methods use varying definitions of mileage traveled as the basis for the compensation. The fourth method is based on the percentage of load carried. There are advantages to being paid by mileage. The most obvious advantage is that your compensation is based on a specific measure of accomplishment. However, there are also disadvantages. One disadvantage is that some hauls require more effort than mileage would adequately compensation for. Another drawback is the relatively low pay that mileage compensation offers when compared to the number of hours actually worked.

Compensation by Household Goods (HHG) Miles - The basis for Household Goods Miles came from the “Household Goods Mileage Guide.” This guide standardized motor carrier freight rates for moving goods. The Guide contains mileage distances between cities, zip codes or highway junctions for more than 140,000 cities. Drivers in the industry believe that HHG miles are shorter than actual miles driven because truck miles are usually driven point-to-point, not from city to zip code or highway junction. In fact, some drivers estimate the difference between HHG miles and actual miles can be up to 12% shorter. Motor carrier companies, on the other hand, claim that the miles driven vary both shorter and longer using HHG miles. So, over time, the actual mileage will even out. The companies also point out that drivers are paid more per mile to account for these variances.

Compensation by Practical Miles – The criteria for this method of compensation has no standard definition across the industry. In general, Practical Miles is used as a more realistic distance estimation than HHG miles. Check with the motor carrier company to determine the specific criteria used if they compensate drivers using this method.

Compensation by Hub Miles – This method links compensation to odometer miles. A mechanical odometer or hubometer is usually mounted to an axle. Motor carrier companies using this method of compensation pay drivers for every mile tracked by the hubometer. Companies sometimes place limits on total mileage not to exceed 5-10% of the estimated mileage for the haul.

Compensation by Percentage of Load – This method is the only one that does not use mileage as a factor for compensation. Instead, a motor carrier company using this method will pay the driver wither a set or variable percentage of what the motor carrier company determined to be the quoted value or rate of the load.

Now that you have more information about compensation, you can more thoughtfully choose the motor carrier company that will help you best attain your income goals. Remember also to contact a reputable trucking insurance company that can offer the insurance you need within your compensation limits.

It’s a simple fact of accounting that profits are generated after expenses are deducted from revenue. To improve your cash flow, it would be great to generate more revenue. However, in this economy, owner operators and contracted truckers may be faced with less opportunity for revenue. So, the wise strategy is to reduce your expenses. One expense to consider is insurance premiums. But you want to be certain that cutting your premiums doesn’t end up hurting your business. To arrive at the right balance, take a look at the following: changes in your business operations, your equipment and its depreciation, your deductible, ways to consolidate providers or ways to find discounts with providers.

Business Operations – One way to lower your premiums is, when the way you operate your business changes, contact your insurance agent and give him or her the details. Coverage costs can change if for example, the type of freight you haul or the type of trailer you use changes. You may be able to save money with a different type of coverage.

Equipment & Depreciation – Your truck may be the single most expensive item you have, but even its value depreciates over time. If it has been a year or more since the value of your truck was assessed, speak to your insurance agent. You may have the opportunity to reduce your physical damage premium. Be careful as well because over-estimating the value of your truck may actually work against you. If you are in an accident where your vehicle is totaled, insurance providers typically pay the lower of the actual cash value versus the stated value.

Deductible - Talk with an insurance agent about raising your deductible, but do so only if you can pay that deductible in the event of a claim. If you are an independent owner/operator, you might also consider combining damage and cargo deductibles or including related costs such as legal fees or lost wages due to downtime. When you talk to an insurance agent about covering these business expenses, be sure you will still have the coverage you need even if you shoulder more of the out-of-pocket costs.

Consolidate and Discount – If you are currently using multiple trucking insurance companies for different trucking related policies, consider combining policies with one insurer. You might be able to save money with a single truck insurance company that offers discounts for multiple types of coverage. You could also simply ASK your trucking insurance provider what discounts they offer. For example, do they provide for safe driver discounts? Do they have age-related discounts available? Might they offer a flexible payment plan to cover your insurance premium instead of paying the entire amount at once or up front? You would be surprised how many trucking insurance providers are willing to work with you to get your business. It is a win-win situation for you and the insurance company!

It can be tough to generate income in this economy, but by using these simple tips, you may be able to lower your expenses. Less money coming out of your pocket means more money for you. A reputable commercial trucking insurance company will work with you to provide the coverage you need at the price you can afford.

It is no secret that your health has a direct impact on the amount and quality of work you do. If you are the operator of a commercial truck or any driver who relies on his or her vehicle as a main source of income, you literally cannot afford to be unhealthy. For you, being healthy means being able to safely drive all the hours it takes to make a living. Also, if you consider that some commercial truck insurance providers offer discounts to low risk, healthy drivers, staying healthy can mean more money in your pocket. In addition, if you can stay alert and healthy while driving those long hours, you will be less likely to be involved in an accident. Fewer accidents means lower risk and could help you to lower your insurance premiums.

Exercises for Truck Drivers

One way to stay healthy is to exercise. But, if you are behind the wheel for multiple hours each day, how do you find the time to exercise? Believe it or not, there are some simple exercises that you can do while sitting behind the wheel. These exercises, done consistently over time, will positively impact your health. Try a few of the following exercises for truck drivers the next time you are behind the wheel and see how much better you start to feel!

Wrist Stretch – Extend your arm and the fingers of one hand against the steering wheel. Gently press your fingers against the wheel and hold for 10-15 seconds. Repeat with your other hand. This exercise, along with the next one, can help loosen your wrist and minimize problems like carpal tunnel.

Fist Flex – Make a fist with one hand, and with your thumb facing upward, anchor your elbow on the center console or your seat. Slowly stretch the fist first to the right and then to the left. The action is similar to holding on to a flag and waving it back and forth with your hand. Do these movements 5-10 times. Repeat the movement with the other hand. You can also hold your arm out to the side and make slow circles with your wrist, keeping your hands in closed fists. Make circles in both directions.

Neck Stretch – Sitting with your head upright, slowly lean your head to the right as far as is comfortable. Hold the position for a few seconds, then lean your head slowly to the left and hold. When you are at a traffic light, lean your head forward and hold for a few seconds, then slowly lean your head back and hold. Do this 10 times. This exercise reduces tension in the muscles of your neck and head.

Shoulder Shrug – To combat fatigue in your upper arms and shoulders, do this simple exercise: With your hands comfortably on the steering wheel, raise just your shoulders to try and touch your ears. The motion is similar to shrugging “I don’t know” Hold the shrug for a few seconds and slowly release down. Do this exercises 10 – 20 times. This is an excellent exercise to reduce the stress in your shoulders

Ab Crunch – You will need a small pillow or some type of lumbar support on your lower back to get the most benefit from this exercise. At every traffic light or during every favorite song or news report on the radio, squeeze in your abdominal muscles and hold for the length of the traffic light or radio song/news report. You should be holding in the abdominal muscles for at least a minute or two each time (the more minutes, the better). After a long trip, you will really begin to feel the benefits of this exercise if you do it consistently. Remember, a spare tire looks best on your truck not on you!

The cost of trucking insurance premiums can increase for a variety of reasons including accidents, major repairs or replacement or theft of cargo. However, some new safety features being developed for trucks and other vehicles can reduce the risk of accidents and help lower your truck insurance premiums. This can be a win-win situation for both the driver and the insurance provider.

Many technologically advanced safety features are available or are being developed for trucks and other vehicles. These safety systems include Electronic Stability Control (ESC), pre-collision systems, adaptive cruise control, lane departure warning systems, and blind spot detection systems. Commercial truck drivers should consider having any of the features on the truck if you want to lower your insurance premiums.

ESC or Electronic Stability Control is a safety and accident prevention technology designed to select the brakes which are applied to one or more tires. This feature helps the truck to slow down more regularly and allows the drive to regain control of the vehicle. Additional advancements are being made on this system. And, the forthcoming ESC II will use steering input combined with throttle and braking control to help slow the vehicle in an emergency.

Some newer and more expensive trucks can also have a pre-collision system. This safety system can sense obstacles and determine if the obstacles are a risk to the vehicle or driver. Then, the system takes active steps to prevent accidents by slowing the vehicle or applying the brakes.

An adaptive cruise control system can regulate safe distances between the truck and other vehicles. This feature engages the brake and throttle systems on the truck to ensure proper distance is maintained and keeps the truck, driver, and other vehicles safe.

Lane departure warning systems are currently being tested on vehicles. Cameras are mounted on the vehicle that will sense road markings. Should the driver become distracted or drowsy on long trips and cause the vehicle to veer out of the lane, these warning systems would sound an alarm to alert the driver. This feature has successfully worked to awaken drivers after many hours behind the wheel.

There are even blind spot detection systems available. This feature will prevent a truck from changing lanes if there is a vehicle hidden in the truck’s blind spots.

Newer truck models have many of these features built-in. However, you can also have some of these systems installed after market. The investment can be well worth it especially when you consider the costs of an accident. Damages and liability costs can skyrocket after even one accident. But with additional safety features, the driver can have the peace of mind knowing that he has taken steps to decrease the risk of an accident. Additionally, the insurance provider has the assurance of decreased potential for costly insurance claims being submitted.

As a trucking transportation professional, knowing pertinent regulations and laws specific to transportation not only makes your trucking company successful, but gives you additional tools to choose the most appropriate truck cargo insurance. While there are many regulations that critical to your business, the most basic, yet most important is a Bill of Lading.  In addition, there are many laws that govern motor carriers. However, knowing the importance of the BMC 32 Endorsement for semi truck insurance is necessary for your success. Reliance Partners provides this information for you so that you can be better informed. We want to educate commercial trucking companies and partner with you.

The essential components to understand about a Bill of Lading include what it is, what it entails, and how it applies to motor truck cargo. A bill of lading is a type of document that is used to acknowledge the receipt of a shipment of goods. A transportation company or carrier issues this document to a shipper. In addition to acknowledging the receipt of goods, a bill of lading indicates three things:

•    the particular vessel on which the goods have been placed
•    their intended destination
•    the terms for transporting the shipment to its final destination

The bill of lading will specify the liability of the carrier and will be obtained by a commercial insurance claims adjuster.

There are many names given to bills of lading, but the most pertinent to the commercial cargo carrier are the inland bill of lading and the through bill of lading. An inland bill of lading is a document that identifies the agreement between the shipper and the transportation company to transport its goods. This bill of lading is necessary for the domestic transportation of goods. An inland bill of lading may by negotiable or non-negotiable. When an inland bill of lading is negotiable, the person who owns the bill has certain rights. This person has the right of ownership of the goods and the right to re-route the shipment. When an inland bill of lading is non-negotiable, the carrier is required to provide delivery only to the consignee named in the document. The other type of bill of lading, the through bill of lading, covers the specific terms agreed to by a shipper and carrier. It covers the domestic and international transporting of merchandise. The through bill of lading gives the specific details about the cost to transport between specific locations.

The law that truck cargo carriers should be most familiar with is the BMC 32 Endorsement. This endorsement, which is a provision added to a carrier’s insurance contract, was created to protect shippers against unrecoverable transit losses that occur when shipping by way of motor carriers. According to William J. Augello, author of the book “Transportation, Logistics and the Law (www.transportlawtexts.com) and executive director of the Transportation Consumer Protection Council Inc. (www.tcpcinc.com), the BMC 32 is one of the most valuable protections that the Congress and the Interstate Commerce Commission (ICC) ever established to safeguard the shipping public. The most important features of this endorsement are:

•    the cargo insurance coverage pertains to all losses or damage for which the carrier is liable up to certain limits without regard for any deductibles or exclusions that may be in the policy
•    the coverage remains in effect until the insurer files a notice of cancellation or modification with the Department of Transportation’s Federal Motor Carrier Safety Administration

Armed with this information, you improve the efficiency and success of your trucking company.

There are different types of liability coverage proving varying degrees of protection. As an owner-operator of a commercial truck, it behooves you to understand these differences and choose the coverage that best suits your needs.

Bobtail Liability – Operating your truck without a trailer is commonly referred to as “bobtailing” or “Deadheading.” Bobtail liability coverage is protection for leased owner operators that provides insurance coverage when your truck is being operated without its trailer attached, whether or not you have been dispatched by your carrier. This type of insurance would cover you, for example, if you deliver a load to a terminal and then driver into another town to pick up a different load there. You would also be covered while you were traveling in your truck to and from work or to and from the repair shop. As noted previously, this coverage is excluded if you are pulling a trailer.

Non-trucking Liability – This type of coverage is oftentimes used interchangeably with bobtail liability, but they are not truly the same. Non-trucking liability coverage is designed to protect leased owner operators against liability claims that occur when you are operating your tuck for personal or non-business use. This type of insurance covers you if, for example, you take your family for a leisure ride in your truck. Coverage is excluded if you are driving under the direction of your carrier. It is also not applicable until you have returned to your principle garage location.

Unladen Liability – This coverage is a newer type of insurance. It has become more popular because it provides you with increased flexibility of protection. While broader in scope with regard to coverage than either bobtail or non-trucking liability, it can be more expensive. Unladen insurance coverage provides you with liability insurance when your truck is being operated with the trailer attached. It will also cover you when you operate the truck without the trailer, regardless of whether or not you have been dispatched by your carrier. As you can probably tell from the definition, unladen liability insurance will cover your when you are bobtailing (deadheading) to and from the terminal or between loads.

Under the law, it is the responsibility of the authorized motor carrier to provide liability protection for the public. So, as an owner operator, you should not have to maintain your own liability insurance. The reality is that motor carriers typically look for ways to reduce their burden for the degree of liability that they are responsible for. They accomplish this by requiring the leased owner operator to release them of this burden in certain situations (bobtailing, personal use, or between loads, etc.). These situations are usually specified in the contracts or lease agreements. As you can see, this is another reason that you should read and understand your lease contract fully. In this way, you can assume only the amount of the motor carrier’s liability that you are obligated to assume.

Though your commercial trucking company is always concerned with safety, the truth is that at some time an accident will happen. The key to a smooth commercial insurance claims process is to follow a few simple steps. These steps should begin immediately following any accident. When these steps are followed methodically they can dramatically reduce any claim delays and denials. The result for your commercial trucking company is less down time and more profitability.

When an accident happens:

1. Immediately Assess The Area For Safety. Is there injury or damage to your truck or other vehicles? It is always wise for the driver to carry paper and pen in the truck to immediately take notes. Also, in these technologically advanced times, a camera phone can be one of the most vital assessment tools. In the event of injuries, you may need to perform first aid. However, be aware that you should be trained and certified to perform first aid before you administer services to any injured persons.
2. Call For Emergency Assistance. A call to 911 will dispatch police and fire & rescue units. In the event that you are carrying hazardous materials, you may also need to contact the Department of Transportation.
3. Collect Information. You should gather as much detail as you can regarding the damaged vehicles, persons involved in the accident, and any witnesses. This step is vital since most truck insurance claims are delayed when commercial trucking companies don’t have this information and the driver did not write it down.
   • a.    Details of Vehicles Involved. Gather information on the make, model, license plate, and registration numbers of all vehicles. Note if any vehicles involved left the scene of the accident
   • b.    Persons Involved. Write down the names, phone numbers, and insurance information of those directly involved with the accident. You will also want to get the names and phone numbers of any witnesses to the accident. Having witness information is important in the event that the witnesses cannot remain at the scene until the police arrive. If at all possible, take down a statement from the witnesses about the accident.
   • c.    Document Damage. Photograph or detail on paper all damage to the commercial truck; also document damage to other vehicles involved in the accident. The documentation of other vehicles’ actual damage will reduce the likelihood that unscrupulous victims will intentionally increase the damage to the vehicle to increase the insurance payout.
4. Contact the Commercial Insurance Provider. The insurance provider can only deal with a claim with the proper information. The more detail that you can provide during that first phone call, the smoother the claims process will be. Some commercial insurance providers will handle your claim by phone at the time of the accident. Other insurers may want to send a claims representative to the scene. In either case, the sooner the commercial insurance company can assess the information, the faster the claim can be processed.
5. Meet with the Commercial Insurance Claims Adjuster. Within a few days after the accident, you or your commercial trucking representative may meet with the claims adjuster to review the details and assess the damage to the commercial truck. It is the claims adjuster who will determine the amount you can claim from the commercial insurance company.

A good commercial trucking insurance provider will want to provide you with swift, hassle-free claims processing. With documentation of the information described above any time you have an accident, you can help your insurance provider get you quickly back to business as usual.

There are many different types of liability coverages providing varying amounts of protection.  As an owner/operator of a commercial truck, it is advisable to consult your lease agreement with your carrier to determine which type of coverage you are required to maintain. Many contracts will use the terms bobtail liability and non-trucking liability together, suggesting that the terms mean the same thing. However, there is a subtle, and somewhat confusing, difference about the actual definition of bobtail liability coverage. You should know what bobtail liability is and have the right commercial truck insurance coverage in place before an accident costs you an enormous amount of money.

Using your tuck without the trailer attached is commonly referred to as “bobtailing” or “deadheading.” If you want to or are required to have insurance coverage for when your truck is operated without the trailer, the type of insurance you should purchase is bobtail liability coverage. This type of liability protection will cover you when the truck is driven without the trailer, regardless of whether or not you are under dispatch and covers any damage that occurs to your truck. It would probably be helpful to have a few examples to further explain when and why bobtail liability coverage is necessary. The coverage would apply, for example, when your drive your tractor without its trailer to and from the terminal. It would also apply when you are traveling between loads without the trailer attached. Again, bobtail liability coverage is applicable whether or not you were dispatched for these hauls.

True bobtail liability insurance offers broader coverage than other types of liability insurance. It can be more costly. Some motor carriers prefer their owner/operators to have bobtail insurance. Because the coverage is so broad, it often limits the carrier’s own exposure. Sometimes, the motor carrier’s contract or lease agreement will have language in it stipulating the requirement for liability coverage as either bobtail or non-trucking liability. Or, the wording in the contract may require different degrees and/or types of coverage. As an owner/operator, it is important for you to ask the carrier specifically which coverage they want you to have. By asking specific questions and understanding what bobtail liability truly is, you can be certain what liability you need to assume for your truck.

The commercial trucking industry relies on transporting merchandise to the end consumer. We believe those goods will continue to be transported by commercial trucks even in these challenging times. It will be the most efficient businesses that will thrive. While you cannot change the current economy, the spending habits of the end consumers, or rising fuel prices, you can assess the appropriateness of your other costs. While commercial truck insurance is required to drive on the roads in this country, you can maximize your chances of lowering your premiums. So, it is very important for you to understand what actionable steps you can take to obtain the most cost effective, quality insurance coverage for your commercial truck fleet. Here are a few factors that will influence the cost of this insurance.

Maintenance of the vehicle: Newer trucks are usually better maintained than older ones. However, consider it an investment when spending money to improve the working condition of your older trucks as well. Department of Transportation inspections are required and can provide a record of your company’s maintenance of the truck fleet’s brakes, tires, lights, and other safety features. Proper maintenance can result in lower premium rates. A commercial insurance company may have a qualified technician evaluated the condition of the vehicle. Being diligent with your preventive maintenance schedule is one of the best things you can do for your trucks.

Driving Record and History: You can receive lower premiums if your drivers’ have clean driving records. The driver, of course, needs a Commercial Driver’s License to operate a commercial truck. He or she should have been driving commercial trucks for a few years and have well established routes. These factors will be taken into consideration when determining insurance coverage rates. Believe it or not, hiring either much younger or much older drivers can increase the price of your insurance. Premiums are usually less when the drivers are between the ages of 30 and 65.

Safety: Take a look at your safety record. It is probably no surprise to you that safety is a big concern in this industry. Commercial trucks can cause a lot of damage during a collision. So, an insurance company will be taking a look at how well you alert the public about your fleet. For example, do you have safety signs such as “Wide Right Turns” with graphics, or information posted on the truck about blind spots and mirrors. Even placing the ubiquitous “How’s my driving with an “800” number alerts an insurer that you are serious about safety, especially if you have actual feedback from the “800” number about your fleet. Making your commercial trucking company’s commitment to safety obvious to the driving public can help reduce your insurance rate premiums.

Maintenance, driving record and safety are only a few of the areas where you can possibly reduce your commercial truck insurance premiums. A good insurance company can help you find many more ways to provide you with the best coverage at the most efficient price. There are many commercial insurers out there, but with Reliance Partners, we can work with any size company, help them focus on their needs, and work together to find the best solutions to bring the cost of your commercial insurance down. We can make it easier to minimize costs and maximize profits even in this economy.

Trucking insurance is probably the greatest expense that a fleet owner can have. With cost of this expense being so high, you may be tempted to choose two things:

1.    find the most inexpensive insurance provider
2.    downgrade the amount of coverage you currently carry

If you are considering either of these choices, also consider this: by doing so you could be financially devastated after an accident. But, you need to find the right insurer and the right coverage for your truck fleet. Just by following these simple steps, you can successfully navigate through the maze of trucking insurance.

Prior to contacting an insurance company you will want to determine the type and amount of insurance coverage that you need. Spend some time researching what options are available to you. If you do these three simple things, you will have a better chance of finding a policy with the highest amount of coverage at the most fair price.

There are many options to consider when determining the type of coverage that you need. Do you want the coverage to include insurance for you, your trucks, your cargo, fire and/or theft, collision, worker’s compensation? Make a list of the types of coverage that will be right for your company. Then, determine the coverage limits that you are most comfortable with for each type.

The next step is to find the insurance company that will provide the types of coverage you have identified at the limits you need. Do not be satisfied with information from just one or two providers. Be sure to request quotes from numerous insurance providers. Having multiple quotes will allow you to compare policies equally and choose the policy with the coverage you want at the best price. One way to accomplish this task is to use a truck insurance comparison website. Once you have your quotes, carefully review each policy and be certain that each contains the same types and amount of coverage. You may want to ask the insurers you are considering if they offer a discount for paying your premium all at once rather than in installments. This step may take the most time, but it can save you the most money in the end.

Since a trucking insurance policy will be one of your biggest purchases, be sure to learn as much as possible about the providers from whom you are considering purchasing your insurance. You should check with various rating systems and review how the insurance companies compare with one another. Another step would be to find out if the company you are considering has the financial stability to pay out any claims that you might have.

Once you have decided on the policy that best meets your needs and have chosen the insurance provider with whom you feel most comfortable, remember to re-evaluate your coverage each year. Your trucking business will grow and change and the type of coverage you need will change right along with it. The trucking insurance market is also very competitive. By annually evaluating your truck insurance coverage, you could realize even more savings by making adjustments to your insurance from year to year.