December 9, 2024
Revolutionizing Carrier Insurance with Reporting Style Policies
At Reliance Partners, we understand that no two motor carriers operate the same way. That’s why we’re proud to provide insights into a flexible insurance model that could transform how carriers manage their premiums: reporting-style insurance.
Insurance is one of the top five expenses for carriers, and traditional policies often come with static, inflexible premiums. Reporting-style insurance, however, offers a tailored approach by calculating premiums based on actual usage metrics like mileage or revenue. This model ensures carriers pay for the coverage they need—nothing more, nothing less.
How It Works
Reporting-style insurance relies on accurate operational data reported monthly, quarterly, or as specified in the policy. This data-driven model adjusts premiums dynamically based on the carrier’s real-time activity, providing cost-effective coverage that aligns with fluctuating operational demands.
There are two primary types of reporting-style insurance:
- Mileage Reporting: Premiums are based on the miles driven each month.
- Unit Reporting: Premiums are calculated based on the number of tractor units in operation.
As Kevin Dupree, our Executive Vice President of Sales, explains, “Carriers only pay for the miles they run. At the end of the month, the insurance company calculates your premium based on mileage, safety scores, and other factors. It’s a flexible model that adapts to changes like new drivers, commodities hauled, or fluctuating equipment usage.”
Why Consider Reporting-Style Insurance?
The key benefit is flexibility. Unlike scheduled policies, reporting-style insurance adapts to changing operations, whether due to seasonal work, holiday periods, or fluctuations in equipment usage.
With advanced telematics and insurtech innovations, tracking and reporting mileage is becoming easier, streamlining the administrative process. However, carriers must commit to timely and accurate data reporting to maintain the policy.
While this insurance model may not suit every carrier, it offers a dynamic, cost-saving alternative for businesses with variable activity levels. For carriers with steady operations, traditional insurance may remain the preferred choice due to its stability and predictability.
Learn More
Reporting-style insurance is reshaping the industry, and Reliance Partners is here to guide carriers through their options. Discover how flexible insurance solutions can work for your business.
Read the full article on FreightWaves for a deeper dive into reporting-style insurance and its impact on motor carriers: Insurance Based on Reported Miles Per Month Offers Flexibility to Carriers.
