Cargo theft incidents continue to rise, but the bigger story is how fraud itself has evolved. What was once largely opportunistic theft has transformed into sophisticated, organized schemes designed to exploit gaps in carrier verification, insurance coverage, and operational processes.

At Reliance Partners, we’re seeing firsthand how these risks are impacting brokers, carriers, and shippers alike.

Fraud Has Evolved Beyond Traditional Cargo Theft

Years ago, freight theft might have looked like a trailer disappearing from a truck stop or a bad actor making off with a load. Today, fraud is far more calculated.

Modern freight fraud often involves identity impersonation, spoofed communications, falsified documentation, and payment diversion tactics that can appear legitimate at first glance.

Common schemes impacting the market include:

• Fraudulent carrier identity impersonation
• Double brokering
• Fictitious pickups
• Spoofed emails and fake dispatch instructions
• Altered certificates of insurance
• Payment diversion scams

The challenge is that many of these fraudulent activities are intentionally designed to pass initial review.

A valid MC number, a polished email signature, or what appears to be legitimate insurance documentation doesn’t always tell the full story.

Why Insurance Coverage Gaps Matter

One of the most overlooked risks in freight fraud is the assumption that insurance will automatically respond after a loss.

Unfortunately, that’s not always the case.

When freight is tendered to a fraudulent party operating under stolen or impersonated credentials, claims can quickly become complicated. Traditional cargo, contingent cargo, or broker liability policies may contain exclusions, sublimits, restrictive warranties, or fraud-related limitations that only come to light after a claim occurs.

Certificates of insurance can also create a false sense of confidence.

A COI only reflects that a policy may have existed at a certain point in time – it does not guarantee active coverage, adequate limits, or protection for a specific loss scenario.

That’s why brokers should evaluate their own insurance strategy with the same rigor they apply to carrier selection.

AI Is Accelerating the Threat

Artificial intelligence has added another layer of complexity.

Fraudsters now have access to tools that make scams faster, more convincing, and harder to detect. Professional-looking emails, cloned voices, fake documentation, and realistic phishing attempts are becoming increasingly common.

As a result, underwriters are shifting how they assess risk.

Strong financials and clean loss history still matter, but today’s underwriting environment also heavily evaluates operational discipline.

Questions underwriters are asking include:

• How is carrier identity verified?
• Are multiple verification layers in place?
• Are contact details independently confirmed?
• Are tracking and monitoring tools actively used?
• Are internal fraud response procedures documented?

Technology alone isn’t enough. The real differentiator is having disciplined processes behind the tools.

Internal Controls Are Your First Line of Defense

While regulatory improvements may eventually help address freight fraud at a broader level, businesses can’t afford to wait.

Practical risk mitigation steps include:

• Establishing written carrier vetting procedures
• Independently verifying contact information
• Training employees to identify fraud red flags
• Requiring tracking protocols for sensitive or high-value freight
• Reviewing contracts for liability exposure
• Structuring insurance programs to address fraud-related gaps

Freight fraud is no longer simply an administrative nuisance.

It’s an operational risk, a financial risk, a reputational risk, and a coverage risk.

Organizations that proactively address these exposures will be in a stronger position to protect both their customers and their bottom line.

This topic was recently featured in FreightWaves with insights from Jamie Cannon, Senior Vice President of Logistics Services at Reliance Partners.

To read the full article, Freight Fraud Has Gone Corporate, visit the FreightWaves story here.

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Insurance rates are one of the biggest expenses for carriers, alongside fuel and maintenance. According to MarketScout’s recent analysis, the transportation industry experienced the highest rate increase in 2023 at 7.26%, with the overall increase across all industry groups at 4.56%.

In a recent episode of “WHAT THE TRUCK?!?” Jackson Alexander, Executive Vice President of Sales at Reliance Partners, joined Dooner to discuss the factors driving up insurance costs and potential solutions to help carriers manage these expenses.

Alexander highlighted a significant shift in the insurance industry: the incorporation of telematics into the underwriting process. “Insurance companies are now connecting with motor carriers via API to their ELD or camera providers, transmitting data back to insurance providers for review,” Alexander explained.

Insurers focus less on the rates carriers receive for loads and more on the exposure associated with what’s on the road, including equipment and load value. When implementing telematics for insurance purposes, providers are particularly interested in metrics such as speeding, harsh braking, sharp turns, and quick accelerations—factors that significantly influence truck claims.

There are two main types of insurance providers: traditional insurers and newer insurtech companies. Insurtech companies leverage technology in their services, much like fintech does in finance. Unlike traditional insurers, insurtechs often require connectivity to a carrier’s telematics system before providing a quote. These companies base rates on driving history and telematics data, offering competitive pricing for carriers with strong safety records.

Traditional insurance providers also incentivize the use of telematics, though it is not always a requirement. Most insurtechs, however, will not offer a quote without API connectivity and a review of the past 90 days of driving history. Carriers that fail to meet the required thresholds may not receive coverage.

For carriers with excellent safe driving records backed by telematics data, insurtechs can offer a viable solution to mitigate rising insurance costs. This is particularly beneficial in a down freight market. Small carriers, who traditionally had fewer opportunities in the telematics space, can now access these programs as some insurtechs have started providing dashcams to help them begin their telematics journey.

Alexander advises carriers to start the insurance renewal process 90-120 days before their renewal date. “You might not get your renewal quote from your current carrier until 30 days or maybe even 14 days before your actual renewal date,” he said. “Expect a 10-15% increase in rates, but don’t wait for that quote to shop. Some markets won’t release a quote unless they receive a submission at least 30 days before the renewal date.”

Click here to read the full article on FreightWaves.

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Andrew Haun, Senior Vice President of Sales at Reliance Partners, emphasizes the pivotal role of robust post-accident procedures in reducing risk for carriers. From immediate response protocols to thorough documentation, these procedures are vital for demonstrating reliability to insurance providers.

Delaying reporting to assess internally can signal negligence to insurers. Familiarity with insurers’ claims reporting procedures is essential to ensure no crucial information slips through the cracks. Swift resolution of claims before litigation can significantly benefit both carriers and insurers, averting costly legal battles.

Balancing a strong safety culture with cost management poses a challenge for carriers. Haun acknowledges the complexity of this task, commending carriers for navigating multiple responsibilities daily. However, he underscores the importance of prioritizing effective post-accident procedures to minimize risk and costs.

Carriers often hesitate to report minor claims, fearing repercussions on future insurance costs. Yet, insurers value proactive engagement and adherence to established procedures, viewing them as indicators of a commitment to safety and risk reduction.

High loss frequency and ratios can indeed inflate costs substantially. Haun advises carriers to consider adjusting deductibles with guidance from their agents, offering a strategic approach to managing expenses without compromising coverage.

To read the full article on optimizing post-accident procedures and navigating insurance challenges, visit Freight Waves.

Click here to discover how Reliance Partners can support your risk management strategies.

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The basis of the legislation increases the liability insurance requirement for vehicles over 26,000 pounds from the standard $750,000 to $1.5 million. This adjustment not only affects New Jersey-domiciled carriers but also raises questions about its applicability to interstate carriers operating within the state. The uncertainty around the law’s reach hints at possible similar actions by other states, prompting a need for the trucking industry to stay alert to changes.

The financial implications are substantial. Doubling liability coverage can significantly increase operational costs, with carriers potentially facing a 40-60% increase in their insurance expenses. “If you have $1 million in coverage and need another $1 million for your entire fleet, you’re looking at an additional 40-60% on top of your primary auto liability limits,” explains Schreiner. This could lead to higher risks or more expensive premiums for carriers striving to meet these new requirements.

Insurance companies are also under pressure, as offering higher coverage limits may require taking on more risk or increasing premiums due to the hardening of reinsurance and insurance capacity markets.

As the trucking industry navigates this regulatory landscape, it’s clear that more states may follow New Jersey’s lead, influenced by governmental efforts to raise insurance minimums. This situation, combined with new Department of Labor regulations, sets the stage for potentially rocky years ahead.

Visit the original article on FreightWaves and explore how Reliance Partners can help your business navigate through these challenging times.

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Insurance for carriers is governed at the state level, despite the Federal Motor Carrier Safety Administration’s universal requirement for liability insurance. This results in a patchwork of regulations that directly impact insurance premiums.

Jackson Alexander, Reliance Partners’ Executive Vice President of Sales, sheds light on the criteria for insurance rate approval. Rates must be sufficient to cover claims, not excessively profit-driven, and free from unfair discrimination. Despite these overarching guidelines, the disparity in state regulations can lead to significant differences in insurance rates.

For instance, New Jersey recently mandated a minimum of $1.5 million in liability insurance for domiciled motor carriers, a regulation that is expected to increase insurance premiums within the state significantly. This variation underscores the importance of residence in determining insurance costs.

States known for being plaintiff-friendly, such as California, New York, and Louisiana, tend to see larger lawsuit payouts in trucking-related cases. This necessitates higher insurance rates in those states to ensure adequate claim coverage. Jackson highlights these state-specific challenges and their impact on insurance premiums.

Despite these challenges, he notes that there are strategies motor carriers can employ to mitigate cost increases. Factors such as individual loss data and CSA scores are pivotal in determining premiums. Proactive measures, like investing in safety technology and choosing higher deductibles, can also help control costs.

Looking ahead, the trajectory of insurance rates will continue to be influenced by state-level decisions. With more states possibly following New Jersey’s lead in increasing liability coverage requirements, the landscape of insurance costs could become even more complex.

Reliance Partners remains committed to navigating these complexities on behalf of our clients, offering expertise and tailored solutions to manage the evolving insurance landscape effectively.

To discover more about how Reliance Partners can support your insurance needs, click here.

To check out the full article from our friends at Freightwaves, click here.

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If you’re only shipping a handful of pallets, it makes sense that you should only pay for that amount of space, right?

Less-than-truckload shipping makes it possible for businesses to cost effectively send smaller shipments. In recent years, it has become an important part of many retailers’ shipping strategies. 

As such, more freight brokers and 3PLs are handling LTL shipments domestically, cross-border and internationally and require extra insurance coverage in case of the unexpected.

While carriers are usually responsible for paying for claims, motor carriers and drivers may be underinsured and claim disputes can burden freight brokers and 3PLs with more work — and they might end up footing the bill because of a carrier’s coverage gaps.

Because of the many touch points inherent with LTL freight, there are some unique exposures compared to full truckload, which make the mode prone to higher claim frequency risk, said Jamie Cannon, vice president of logistics services at Reliance Partners, a Tennessee-based freight insurance agency.

For instance, as opposed to full truckload freight, which is normally sealed upon loading and only opened when delivered, an LTL route consists of multiple stops along a route and more hands in the pot. This opens up the potential for mishandling, jostling or even temperature changes that can damage certain kinds of cargo.

“If it’s a reefer load or load that requires certain temp requirements, the opening and closing of the trailer could impact temperature, resulting in a loss or multiple losses, for example,” Cannon explained.

Just like it’s a good idea to insure full truckload freight, insuring LTL cargo is a smart way for freight brokers to protect themselves against carrier coverage gaps. Often, however, LTL shipments go undercovered and freight brokers may get stuck paying big money.

Cannon advises freight brokers to make sure the LTL commodity is not excluded from carrier insurance policies and confirm the valuation is adequate and in line with cargo value. Purchasing a separate LTL policy is a smart move to avoid losing money on damage or loss claims.

If it’s a low-value shipment, freight brokers, shippers and even motor carriers can take out individual per-load primary policies through Reliance Usage-Based Insurance and get a lower deductible. This same usage-based insurance program can cover higher-value cargo as well. This unique insurance covers gaps that other policies don’t and make it easy to insure by the load, including LTL, regardless of the motor carrier’s cargo limit.

Reliance Partners has a dedicated logistics service team with years of experience in freight brokerage coverage, trailer liability and API-capable usage-based insurance programs. If you’re unsure you’re meeting insurance coverage requirements or concerned about coverage gaps, the Reliance Partners team is ready to answer your questions.

To learn more about Reliance Partners, click here.

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Every time a driver moves a truck, there is some level of risk that an accident, injury or damage will occur. Even when the truck is sitting idle, theft, fire or storms could impact your vehicle, costing your business losses not only for repairs but for potentially missed productivity. These risks exist to some extent no matter how safe an organization is or what precautions it takes.

When the unexpected happens, carriers and drivers need a fallback to protect their investments, and for this, trucking insurance is necessary.

When it comes to truck insurance, companies may conclude that one company or driver’s risk is greater than others for a number of factors. This could be for reasons that are more inherent in the nature of the business or other reasons that a company can actively work on improving.

Reliance Partners, a Tennessee-based freight insurance brokerage agency, is dedicated to helping carriers that qualify for high-risk truck insurance not only find coverage for their businesses’ requirements so they can operate with peace of mind but provide them with the resources and expertise needed to lower their risk. Ultimately, less risk means better premium payments. 

What makes your company a higher risk?

Insurers take a number of factors into consideration when determining risk. One of those is the type and characteristics of freight being hauled — like hazardous materials, oversized or even high-value loads. A company could also be considered a higher risk if it’s a new venture without a proven safety track record — or a driver is less experienced.

“The scarcity of drivers in this industry right now makes it very tough to find more experienced drivers,” said Kevin Dupree, executive vice president of sales at Reliance Partners. “But many insurance companies stress the importance of having drivers with at least two years of experience. They understand pre-and post-trip inspections and road rules and have a better feel of the truck.”

According to Dupree, safety is one of the most significant factors that insurers base rates on. For example, some of the background underwriters look at include: 

• Poor Compliance, Safety, Accountability (CSA) scores.
• High out-of-service percentages.
• Conditional safety ratings.
• High loss frequency.
• Large shock losses. 

To underwriters, these past actions imply the potential for repeat occurrences in the future and a higher possibility of a claim later on.

Lowering your risk

One controllable way to lower your risk is by improving safety compliance.

Behavior Analysis and Safety Improvement Categories (BASICs) are the most significant data components used in the Safety Measurement System that factor into a CSA score. Data is pulled from past roadside inspections and crash reports, which affect BASIC percentiles compared to other carriers.

BASICs encompass the following:

• Unsafe driving.
• Crash indicator.
• Hours of service compliance.
• Vehicle maintenance.
• Controlled substances and alcohol.
• Hazardous materials compliance. 
• Driver fitness.

Dupree said staying on top of drivers’ hours of service logs to ensure compliance, consistent pre-and post-trip inspections for maintenance issues and even installing dashcams to monitor the vehicle are all examples of steps to take to begin to manage risk.

“Safety scores need to be monitored daily and weekly,” Dupree said. “They can change halfway through the year. Once you begin to have more and more good inspections, your safety scores are going to improve. You’ll see your insurance scores get better and pricing go down, which is big when you want to save money.”

Reliance Partners is made up of industry experts who understand insurance, what underwriters look for, and how carriers can improve.

“We can sit down with any client, regardless if they have one or 1,000 trucks, and say, ‘Underwriters see X, Y, Z, which is why you pay this price per truck.’ If we work together, we can help improve your safety scores by implementing new vehicle maintenance plans or driver hiring standards that can eliminate a lot of those violations going forward.”

Dupree also noted that Reliance Partners can help carriers to even remove violations they’ve received through DataQs, allowing them to improve safety scores.

To learn more about Reliance Partners, click here.

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Founded in 2009 and headquartered in Chattanooga, TN, Reliance is the fastest organically growing commercial insurance broker in the United States with nearly $500 million in gross written premiums. The Company specializes exclusively in commercial transportation risk management solutions, a unique differentiator within the highly fragmented insurance brokerage industry. Through its deep domain expertise, customer-centric sales approach and innovative technology, Reliance provides access to a full suite of insurance solutions to over 8,000 truck fleets and freight brokerage customers across the United States.

Reliance boasts an incredibly diverse employee base with over 25 nationalities represented and 30 languages spoken, allowing the Company to better serve an increasingly diverse network of transportation customers. Reliance strives to cultivate an entrepreneurial culture that values ambition and drive, providing employees with the tools necessary to succeed and challenge the status quo in the transportation insurance marketplace.

“We chose Carousel because of their partnership approach, our alignment on strategy for growth, and their ability to help us achieve our goal of reaching $1+ billion in premiums in the next 3 years,” said Andrew Ladebauche, CEO of Reliance. Chad Eichelberger, President of Reliance, added, “Our company is at an inflection point, and after getting to know Carousel over the past two years, we are thrilled to have the opportunity to partner with them for both financial support as well as strategic guidance. Their experience fits perfectly with our strategy, where we are today as a company, and where we want to take Reliance over the next decade.”

“We were drawn to this partnership due to the strength of the team, their unparalleled track record of organic growth, differentiated sales strategy, and customer-centric focus. Reliance is the leading domain expert in transportation risk management in the U.S., and is uniquely positioned within a very large and fragmented market. We are thrilled to partner with management and help the Company accelerate and achieve its growth objectives,” said Al Welch, Partner at Carousel Capital. “The opportunity with Reliance and management intersects so well with our past experience in insurance services, insurtech, and transportation,” added Jason Schmidly, Managing Partner at Carousel Capital. “This partnership represents our continued belief in an underlying theme in insurance services – technological innovation drives efficiency and facilitates a better experience for all stakeholders.”

“We are beyond proud of the Reliance team and what they have accomplished over the course of our partnership and are excited to continue as investors to support the business,” said Lamp Post Group Co-Founder Ted Alling.

The partnership was funded with equity from Carousel Capital’s sixth fund. Senior debt financing was provided by Apogem Capital. K&L Gates served as legal advisor to Carousel and Bradley served as legal advisor to Reliance.

About Reliance Partners

Reliance Partners is a high-growth commercial insurance agency in the United States and a top tier provider of a wide range of insurance products and risk management services for the transportation and logistics industry. For more than 10 years, Reliance has been providing solutions for safeguarding the supply chain networks that drive the American economy forward.

About Carousel Capital

Based in Charlotte, North Carolina, Carousel Capital is a private investment firm that invests in companies located in the Southeastern United States. Carousel’s investor base includes institutional investors and an elite group of more than 100 current and former CEOs with deep connections in the region. Since its inception in 1996, Carousel has invested in 49 companies primarily in three targeted growth sectors: business services; consumer services; and healthcare services.

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On paper, trucking is pretty simple: Carry a load from one point to another. But reality isn’t so easy.

For all the obstacles to overcome and hurdles to jump over, the best way to get from point A to point B safely and on time is through proper trip planning.

Reliance Partners Vice President of Safety Brian Runnels and Director of Safety Robert Kaferle have built careers on improving fleet safety and the well-being of drivers. They stress the importance of starting each day with a plan in place.

“It’s probably one of the most important things to know for this job — knowing where you’re going to be, when you’re going to get there and how much time you’ve got left to keep working,” Runnels said.

Drivers switch jobs or leave the industry altogether for numerous reasons; Runnels suggests that poor trip planning may be a factor. He explained that trucking can be overwhelming and confusing at times and that new drivers may become frustrated if they don’t receive the amount of loads that they expected.

But these are often because of misconceptions. The first rule of trip planning is to communicate clearly with dispatch.

Time and time again he’s seen drivers decline loads because of their inability to meet delivery time frames. For that reason, he advises drivers to never turn down a load that seems impossible without first conveying your abilities with dispatch.

“Talk to dispatch and say something like, ‘I can’t have it there by 10 a.m. but I can get it there by 1 p.m. in the afternoon,’” Runnels said. “With capacity being what it is, they’re more than likely going to try to move the delivery appointment to get that load covered.”

The ability to relay to the dispatcher where you’re heading, your arrival time and what’s left of your hours of service goes a long way in building trust, which in turn, may increase the amount of loads offered to the driver, thus earning them more money, Runnels said.

The second rule of trip planning is to calculate your travel time. Kaferle uses a simple trick: Take your travel distance and divide by your average speed.

Using this calculation will help set expectations for yourself, the dispatcher and for your shipper customers.

Say you’ve got to travel 300 miles. When divided by 50, you can expect your trip to take roughly six hours.

But remember to be realistic with your estimates. Though the dispatcher wants the load delivered ASAP, your goal should instead be to get it there as soon as safely possible.

Kaferle said drivers, especially younger ones, often set ambitious goals for themselves. So instead of dividing by 50 miles per hour, they’ll instead use 60, assuming they’ll be speedier. They fail to consider traffic, weather and stops they may take.

“Proper trip planning isn’t just about distance and time, it’s being ready for the unknown,” Kaferle said. “If you’re traveling anywhere in the Midwest, Upper Midwest or in the winter or the Great Lakes around upstate New York and you’re not prepared for ice and snow, then you’re going to be in trouble.”

In addition to checking the weather forecasts each day, it’s also worth studying your routes in detail. Drivers need only to turn to their oldest travel companion: the road atlas.

The third step is to familiarize yourself with the route ahead of you.

It may sound antiquated, but studying maps and a road atlas is a great investment of your time. Runnels strongly suggests this practice as drivers not only learn their routes more intimately but will gain a deeper understanding of road signs, weight requirements, restricted routes, truck stop locations, among other details that GPS doesn’t provide.

However, GPS and web mapping platforms like Google Maps come in handy for researching the closest truck stops to your destination. What’s more, drivers can learn a great deal about the traffic patterns of any city at any particular time. When finding a place to unwind, Runnels suggests using these insights to choose a part of town that will keep you from traffic, as he said there’s nothing worse than having to endure gridlock first thing in the morning.

Runnels doesn’t use maps often these days, but that’s only because the maps are imprinted in his head as he spent his early years carefully analyzing each route.

“Everybody has a gift of some sort in their brain; mine is the ability to remember places and how long it takes you to get there,” he said.

Runnels attributes his trip-planning techniques to his father, describing him as a great planner. Both father and son spent countless hours together on the road as the pair actually received training and ran a team operation during Runnels’ first year in the industry.

Kaferle finds it frustrating that a lot of fleets assume their drivers already know how to plan, assuming their drivers are joining their fleet with prior experience. But he said that trip planning often isn’t addressed during your typical orientation.

He advises those just starting their truck driving careers to take things slow, explaining that it takes about a year or so to figure out what you’re capable of handling as well as discovering your limitations.

It often goes that new drivers develop a healthy fear of the road as they take in the nature of the job, but Kaferle said it doesn’t take long for drivers to gain confidence in their abilities, which is fine but it’s also where some feel comfortable in taking risks.

“When you rush, delivering your load early is the only good thing that can happen, but a lot of bad things can happen too,” Kaferle said.

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