Insurance providers have instituted measures to work with owner-operators and small-fleet owners who can’t afford to pay their premiums due to lost business. Chiefly, most providers have placed a temporary halt on cancelling policies for non-payment, and most are allowing truckers to temporarily suspend their policies and their premium payments if they pledge not to work during that time.
These leniency options are in response to the economic stall caused by the COVID-19 coronavirus outbreak and social distancing measures which have slowed, in some cases dramatically, freight movement across all sectors of the economy.
“Every insurer is handling it a little differently,” says Scott Lyden of broker Hadley & Lyden, who works primarily with small fleets, many of them single-truck operators. “My advice to truckers is to get in touch with your agent and see what options are available for your particular policy.”
Simply missing premium payments and ignoring late notices will “get your policy cancelled,” he said. “We’ve been getting a lot of calls from our clients. The ones that are proactive are going to find a solution to the problem.”
If a business is operating with trucks working, in most cases premium payments won’t be forgiven outright or paused, given ongoing exposure to potential crashes and claims. But providers are working with operators to provide extended payment options for premiums or pushing due dates, if need be.
Progressive Commercial, one of the largest providers in the owner-operator and small-fleet market, has said it won’t cancel policies in the case of non-payment through May 15. “We are both aware of and sensitive to how COVID-19 has caused unprecedented disruption to businesses and communities,” said Peter Niro, product development manager at Progressive. The company is “working with customers to extend payment leniency,” as well as helping “customers lower their bill by updating their policy to align with changing insurance needs.”
Most providers have put a similar temporary moratorium on cancellations for skipping premiums, according to Joe Hutelmyer, chief underwriting officer for AmWins Transportation. “The insurance companies understand the position the truckers are in and they appreciate it,” he said. “Best bet is to contact your agent and explain your situation.”
