Insurance agents play a pivotal role in assisting trucking companies to obtain appropriate coverage that protects carriers, drivers, and the public in the event of accidents or unforeseen incidents.
However, too frequently some insurance agents resort to unethical practices, including the insertion of false information in commercial trucking insurance applications to insurance providers.
While this highlights the potential risks associated with some insurance agents, it also highlights the significance of partnering with a trusted, reputable, and reliable insurance agent.
Let’s look at why.
Why is lying on insurance applications dangerous?
While most insurance agents, like our agents here at CNS Insurance, are honest and uphold their professional ethics, a small fraction may be driven by various motivations to manipulate commercial trucking insurance applications.
In a competitive market, some agents may resort to misrepresenting details to undercut competitors’ premiums, thereby attracting more clients to their agency.
While they may believe that bending the truth or omitting certain details will streamline the application process, false information in commercial trucking insurance applications can lead to significant risks and severe consequences for all parties involved.
- Insurance providers may deny coverage, leaving the trucking company and driver financially exposed.
- Insurance companies have the right to void policies if they find out that false information was provided during the application process. In such cases, any claims made could be rejected, rendering the insurance coverage worthless.
- Falsifying information on an insurance application is illegal in many jurisdictions and may result in fines, penalties, and criminal charges.
To prevent this, insurance providers must implement a thorough underwriting process that verifies the accuracy of the information provided in applications, thereby reducing the chances of false details going unnoticed.
Of course, the best method is to just work with a trusted agent in the first place!
Why is it critical to find a Trusted Insurance Agent?
Trucking insurance is expensive and time-consuming.
According to ATRI’s Analysis of the Operational Costs of Trucking report, insurance premium costs per mile increased 47% over the last 10 years, from 5.9 cents to 8.7 cents.
Here are 6 reasons why finding a trusted insurance agent is critical for your business:
- Expertise and Industry Knowledge: Trusted insurance agents possess extensive knowledge of the commercial trucking insurance industry, understanding the unique risks and challenges faced by carriers, and can provide tailored insurance solutions that fit your unique needs. Their expertise ensures that clients receive comprehensive coverage that adequately protects them in case of accidents, cargo damage, liability claims, and other potential risks.
- Ethical Practices and Transparency: Trusted insurance agents provide accurate and honest information throughout the insurance application process, ensuring that clients fully understand the terms and conditions of their policies. By choosing a trusted agent, trucking companies can have confidence that their insurance applications are submitted truthfully and that they receive the coverage they expect.
- Access to Multiple Insurance Providers: Reputable insurance agents typically have access to a wide network of insurance providers and can compare various policies and options from different companies, helping their clients find the most suitable coverage at competitive rates.
- Personalized Service and Support: Trusted insurance agents take the time to understand the unique requirements of each trucking company, including fleet size, cargo type, driving records, and safety protocols. With this information, they can tailor insurance packages that align with their clients’ specific operations, providing the best coverage possible.
- Claims Assistance and Advocacy: In the unfortunate event of an accident or incident, a trusted insurance agent will be there to guide and support their clients through the claims process. They act as advocates, ensuring that the claims are handled promptly and fairly. This support can significantly reduce the stress and burden on the trucking company during challenging times.
- Stay Current with Industry Changes: We all know that change happens in the trucking industry. Trusted insurance agents stay up to date with industry changes and keep their clients informed about any relevant updates. This ensures that trucking companies remain compliant with insurance regulations and maintain the appropriate level of coverage.
Let CNS Insurance be your trusted agent
Good news! You found a trusted insurance agency. Want proof, give us a call and we can provide some testimonials!
Then let us help you figure out what coverages you need.