It’s no secret that operating a business takes a lot of effort. That includes a trucking company. People may enter the industry for several reasons like the flexibility of setting their own schedule or knowing they can make a significant profit. With that also comes certain risks that are unique to the industry.
Trucking Companies Can Be Risky
There’s no way to eliminate all of the risks associated with running a trucking business, but there are some remedies you can implement to either lessen the risk or eliminate some.
Repair and maintenance costs come with a high overhead that can cause your trucking business to lose money. Create a budget that factors in these overhead costs and allows you to make a profit. This risk can be avoided by paying attention to how much money is being spent and earned.
If you own a trucking business and you are not in compliance with government regulations, you run the risk of receiving fines and losing money. There are state and federal rules for operating a trucking business. These rules are designed to make it safe for all drivers on the road. Owners should be aware of these rules to protect their business, their drivers, and the public.
There’s a concern within the trucking industry about drivers retiring without a new generation of drivers entering the industry. A shortage could significantly slow up your business. In addition to that, you’ll need trained and safe drivers who understand what’s required of them from your company and the government.
According to the American Society of Civil Engineers, poorly designed infrastructure leads to traffic congestion which wastes billions in fuel. Many highways and interstates are deteriorating, have sign issues, dealing with ongoing construction, etc. This can significantly impact a trucking business with delivering goods. Drivers cannot do much in situations like this except try to plan routes that they expect will render the least amount of delays.
Truck drivers spend a lot of time on the road. That can prevent them from receiving exercise and healthy meals. The Federal Motor Carrier Safety Administration has implemented a limit on the number of hours a driver can spend on the road. There is also a mandatory rest period. These rules are to improve the health of truck drivers, which can reduce risk for companies in return.
Another concern for the trucking industry is the cost of insurance premiums. According to the American Transportation Research Institute, trucking owners believe an increase in premiums over the last decade could impact their profits. Some have cited it as a reason they went out of business.
Forerunner Insurance Group: The Best Rates and Coverage
Lower your risks by making sure each truck in your fleet is adequately insured. Forerunner Insurance Group offers commercial truck insurance for semi-trucks. We’ll help you determine which kind of liability insurance your business needs. Protect your assets by working with us. We have a team of insurance experts that can help guide you toward safeguarding your business. Get a quote from us by clicking here.