As we near the end of hurricane season, a key time for evaluating industry trends, our Executive Vice President and General Manager, Ashley Hammonds, recently sat down with FreightWaves to break down critical factors influencing insurance rates for the trucking and logistics sectors. While certain natural disaster effects are subsiding, other persistent challenges—such as theft and safety concerns—continue to play significant roles in shaping insurance costs for carriers.

Natural Disasters and Insurance Impact

Although this year’s hurricane season has been less severe in some respects, significant events, like Hurricanes Helene and Milton, left lasting effects across the Southeast. Hammonds explains that while we may not see large, sweeping rate hikes due to hurricanes, incremental increases are expected for companies within typical hurricane paths. Traditional policies often cover natural disaster damages, yet proactive risk management—such as relocating equipment and utilizing backup vehicles—can help carriers avoid claims and minimize premium increases.

Rising Cargo Theft

One area of particular concern is the surge in cargo theft, which has increased by 14% year over year. This spike has led to roughly $39 million in reported losses during the third quarter alone, according to CargoNet. The rising frequency of theft claims is challenging insurance providers, causing delays and increased costs as insurers balance these complex investigations alongside other claims. Hammonds emphasizes that active carrier involvement—by providing information and prompt follow-up on theft claims—can expedite processing and keep additional fees, and consequently premiums, under control.

Carrier Involvement and Claim Processing

When carriers actively participate in claim management, rates are more likely to remain manageable. Hammonds advises carriers to stay engaged, monitor the status of claims, and work closely with insurers. The quicker claims are processed, the fewer extra storage and processing fees accumulate, which could ultimately result in more stable premium rates.

Looking Forward: Safety and Losses

For 2025, carriers should keep a close eye on two main insurance drivers: overall carrier safety and loss records. Hammonds notes that losses remain the top concern for insurers; keeping these as low as possible is crucial for rate stability. Moreover, ensuring that safety practices align with FMCSA standards will be essential in maintaining favorable insurance costs.

For more in-depth insights and the full conversation with Ashley Hammonds, check out the article from our friends at FreightWaves.