Increasing Sustainability and Profits with Proper Coverage

By Lina Demedieros

Recently, I received a post card from Vancouver from a reader advising it was much better being a driver than an Owner Operator. Thank you for your comments, however, the sole difference is money management. Al l these opportunities exist in Owner Operator community as more trucking companies increase compensation acknowledging overall expenditure absorbed by O/O.

On October 31st, 2008, I attended The Health & Safety Association conference, Dr. Peter Strahendorf spoke of “internal Responsibility Systems and Due Diligence” in regards to Health and Safety matters within an organization , how it was everyone’s responsibility and NOT exclusive to management.

As an Owner Operators, this starts with you at many levels. After 14 years, I have heard some of the largest trucking companies negotiate benefits on a volume basis on behalf of their Owner Operators. One message was always loud and clear, low cost of insurance; affordable alternatives and the insurance industry implemented plans that were off the shelf since 1950. These plans affording catastrophic coverage sold in millions, depleting the industry of Quality Owner Operators, as they found themselves NOT covered for many situations after the fact. However, today we do have many O/O and carriers who witnessed the impact of their sustainability and profits is directly and indirectly on the choices made from a risk management standpoint.

It is everyone’s responsibility to sustain business and increase profits. When you leave the decision solely to the transport carrier, then of course once it becomes a heavy burden on operational costs. The costs reverts back to you. Driver models are easier to manage but equally harder to find. The investment is so great at many different levels and from a corporate stand point not as easily implemented since safety and health matters, due diligence rests with the company and everyone within the organization.

Independence and freedom offers a price to pay and its advantages. The choices you make in regards to your own personal your loss of income need from an injury and illness, extended health care, life insurance needs standpoint has a direct impact on your partner; the transport company. The largest operational cost is fleet insurance, your insurance portfolio handling risk management which directly impacts all aspects of your business in the event of a loss.

As an advisor, who specializes in this market providing proper risk management solutions. Management is always listening to your concerns, implementation of proper risk management solutions difficult based on reaction without consideration of impact on other aspects of business .However, this management style has lead to many losses that directly impacted your fleet insurance and companies abandoning the industry on a whole.

The message at the end of 2008 as many fleets learn that many Owner Operators are NOT exercising their own “internal responsibility system” by implementing proper risk management solutions is depleting profits. So survival of this industry is dependent on everyone’s co-operation in transportation. Each and every Owner Operator should implement their own “internal responsibility system”. You will see the savings, increase profits and your sustainability in the industry. The key is to start acknowledging your true needs manage you own business and understand your limitations.

Merry Christmas!

Lina M. Demedeiros
Living Benefits Specialist
E&O.E.

Back