This is not a topic I enjoy or take any pleasure in writing about. However, by doing so I hope to help any aspiring or new truck owner avoid making decisions that later result in financial hardship -- possibly even in losing the business entirely.
Recently I’ve received an increase in calls from truck owners struggling to keep their businesses afloat. To one extent or another, all blame an increase in their insurance premiums as the cause of their situation. Most believe it’s a result of their greedy xxxxxx insurance carrier who doesn’t care if they go out of business or not. As a longtime independent owner-operator now principally working as an insurance agent, these calls have been especially difficult for me. While honesty is always the best policy, and it’s the only way I know how to help, it’s not always well received.
All of those who have called and asked me for help share some things in common. Still in their first year of being in business, they have:
Sadly, most who find themselves in this circumstance seldom recover and make it to their second or third year in trucking. Hindsight is 20/20, I know, yet all could have benefited had they had opportunity to read the story at this link about common pitfalls associated with growing too quickly, based in part of my own personal experience. Many could have avoided the unfortunate circumstances by implementing the strategy outlined in my story on just what to do to make certain your insurance premium is as low as it can be.
[Related: Moving beyond just one truck: The case for careful preparation]
Unfortunately, none of the owners I’ve spoken to seem to be aware that their business decisions have caused the consequences they find themselves facing. Put another way, it’s not the fault of greedy insurance companies. As difficult as it is to hear, these are self-inflicted wounds incurred as a result of an unaware business owner’s decisions.
