Factors That You Might Run Into As A New Venture
Starting as a new venture is an exciting time for a trucking business. As you get everything prepared to get on the road and start running loads, focus on making strong and informed business decisions. The new venture label stays with you for your first two years in business. During this time, the right partnerships and people behind you make the biggest difference between running a successful business and not being able to last in the industry.
We went over the basics of your insurance policy in our last blog – Tips for New Ventures and heard from Kyle and Beau in our first new venture YouTube video. Now let’s cover some more factors that you might run into as a new venture.
Factor 1: Perception
Something important to consider when you get policy quoted is how brokers and shippers might perceive your status and evaluate your coverage. It is imperative to make sure your agency knows all of the details surrounding your company. If so, they can bind a policy that fits the current state of your business and prepare for its future. Whether that means adding new trucks and drivers, running in different states, etc.
Factor 2: Ratings
Brokers and shippers will look for Motor Truck Cargo coverage with a $100,000 limit and will also pay attention to your insurance company’s rating. Most brokers and shippers will prefer a highly rated insurance company so that they can have peace of mind that you are covered on the road. Sometimes a Risk Retention Group ends up as your only option, but it benefits to go with a highly rated insurance company (preferably A or B rated).
Your insurance company’s rating reflects the financial stability of that insurance company as well as its ability to pay out claims. This means that brokers’ and shippers’ trust lies in someone with coverage from an insurance company that has a high A.M. Best rating.
Some other additional questions you might have could include the financial impact of your policy. We know that insurance is one of the costliest parts of starting your own company, but it is also the most important part of running your trucking business. Some common questions surrounding the financial responsibility and/or important factors that come up when binding your policy:
Will my monthly installments be premium financed or direct billed?
Is towing and clean-up coverage included? If so, what’s the limit?
Am I able to grow my business and add more units within the first year?
When in doubt, reach out to your agent with questions so that your policy can be explained from top to bottom.
If you’re searching for insurance or if you want to see if your current insurance is the right fit for you, reach out to MIG today. With our group of trusted partners and focus on the trucking industry, we will be glad to guide you in the right direction.
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